The AEMC has made a rule to amend the definition of a ‘generating unit’ in the National Electricity Rules (NER) in response to a rule change request submitted by the Australian Energy Market Operator (AEMO). This will clarify that the rules for eligibility for registration as a generator are technology-neutral so that non-traditional generation like battery storage and solar PV can be appropriately included.

The rule change request arose from the AEMC’s Integration of Energy Storage report, where a number of submissions to this project commented on a lack of clarity regarding this definition. As a result, AEMO proposed a rule change to address this issue in a timely manner.

The Commission has determined to make the rule as proposed since it will, or is likely to, contribute to the achievement of the National Electricity Objective (NEO). This is because it will promote efficient investment through promoting technological and process neutrality, as well as regulatory certainty as to those parties that can register as a generator.