The AEMC has published stakeholder submissions on our draft rule to give developers better and more up-to-date information about what new generation projects are in the pipeline. 

In August 2019 the Commission released a draft determination and rule to help businesses make better investment decisions on where to locate new generators and assess project viability. The draft rule was made in response to proposals from the Australian Energy Market Operator, Australian Energy Council and Energy Networks Australia.

The draft rule would:

  • extend access to key technical information to certain types of developers who are not “registered participants”. This reflects the emergence of new business models where some developers are selling generators before connecting to the grid. 
  • require transmission businesses to share key project information with AEMO. Information would include the type of generator proposed, the technology it uses, the maximum power it can generate, and the project’s timing. 
  • codify AEMO’s generation information page in the national electricity rules. This would enable AEMO to publish more detailed, up-to-date data on proposed and existing generators on its website, to increase the visibility of proposed connections.

We have received 15 submissions to date from a wide variety of stakeholders, including generators, networks, major energy users, industry associations, consumer groups and market bodies. 

Overall, stakeholders – across all types – were supportive of the intent of the rule change to increase transparency of new generation projects coming into the market. Key themes from stakeholder submissions are summarised below.

Reforms to the intending participant category and developers

  • On balance, stakeholders supported the Commission’s approach to deem project developers to be registered participants for specific national electricity rules (NER) clauses, allowing them to access information required to develop their assets.  However, generators and AEMO suggested that it would be helpful to have more clarity about the process that would be followed in terms of giving developers data, for example what would developers have to demonstrate in order to obtain data. 
  • Stakeholders supported formalising in the NER the annual review that AEMO currently conducts of the intending participant category.
  • Some stakeholders recommended extending this audit to include project developers as well.

Information provision to market participants

  • Stakeholders were very supportive of codifying AEMO’s generator information page in the NER and considered this would formalise the page as a key market reference source.
  • Stakeholders were also supportive of transmission businesses sharing key connection information relating to proposed generation projects, with this information to be also provided to AEMO to be published on its generator information page. Nearly all stakeholders noted that the key connection information is the right information to be publishing, although AEMO suggested that this could be broadened.
  • However, stakeholders had different views on:
    • what point in time the data should be shared, for example whether the data should be shared at the connection enquiry or connection application stage
    • if data should be aggregated 
    • how often the data should be published, for example monthly or quarterly.
  • Stakeholders also queried whether the obligations should also apply to distribution businesses. Also, large consumer representatives shared concerns as to how these clauses would operate in relation to load, noting that it could potentially reveal commercially sensitive information. 

Implementation

  • A number of stakeholders queried whether the implementation timeframe could be brought forward (the draft determination proposed that the changes be implemented in stages by end February 2020). 
  • Some stakeholders also encouraged the Commission to consider whether key connection information received by transmission businesses prior to the final rule being made could be shared more broadly with the market.

The Commission is due to publish a final determination on 24 October 2019. 

This work is part of the AEMC’s system security and reliability action plan.

Media: Prudence Anderson, Communication Director, 0404 821 935 or (02) 8296 7817

BACKGROUND

The AEMC received three rule change requests seeking to address common issues around information provision for new projects. These were consolidated into one rule change process: 

  • The Australian Energy Council’s request proposes a number of changes including improvements to AEMO’s generator information page and requirements on new project proponents to provide AEMO with up to date information.
  • AEMO’s proposal seeks to allow developers to register as intending participants so they can access additional information to assist them in building a generation system.
  • Energy Networks Australia’s request would allow transmission network service providers to publish key information they have received from connection applicants about new and proposed generation connections.