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AEMC’s outlook maps path to lower household energy costs through coordinated transition

28 November 2024

The Australian Energy Market Commission (AEMC) today released its analysis of residential electricity prices over the next decade, showing how Australian households could significantly reduce their total spending on energy – including electricity, gas, and petrol – through a well-managed transition to electrification.

The comprehensive analysis represents a new approach from the AEMC, extending from a three-year to a ten-year outlook to better capture long-term trends and provide deeper insights into what drives costs as Australia's energy system transforms.  

Rather than just examining electricity prices, the analysis also considers how households' total energy costs or their 'energy wallet’ will change as they electrify transportation, heating and cooking.  

AEMC Chair Anna Collyer said the findings demonstrate both opportunities and challenges ahead.

"Our modelling shows that with effective planning and investment, Australian households could see their total energy spending fall substantially over the next decade through electrification.

"However, we need to ensure this transition is well-managed and equitable, so that the benefits are accessible to all households, not just those who can access new technology immediately.

"This 10-year outlook provides new insight into how household energy costs could evolve as Australia's energy system transforms. While the overall trend is encouraging, achieving these benefits requires coordinated action across the sector,’’ Ms Collyer said.

Key Findings:

  • Under our base case analysis, residential electricity prices across the National Electricity Market could be around 13% lower in ten years' time, if renewable energy and infrastructure development proceeds as expected.  
  • The analysis shows prices initially dropping as new renewable energy supply connects to the grid. Network prices are also projected to decline despite significant investment, as increasing household electricity use helps spread these costs across a larger consumption base.
  • Under this base case scenario, aligned with AEMO's Integrated System Plan projections, electrification would lower total household energy expenditure by nearly $1,000 per year – or by 20% – on average by the end of the 10-year outlook.  
  • Individual households who electrify could see even larger benefits, with potential reductions of up to 70% in their total energy costs.
  • The outlook depends on coordinated planning and timely investment in transmission, generation, and effective integration of household energy technologies.

Regional Outlook

"While different regions face different challenges and opportunities in this transition, our analysis finds the overall trends in residential electricity prices are generally consistent across the National Electricity Market.

‘’This reflects how the key drivers, like the significant build-out of renewable generation and growing household electrification, are having similar impacts on costs across the interconnected jurisdictions,’’ Ms Collyer said.

Our modelling accounts for each region's unique circumstances, including infrastructure needs, existing generation mix, and policy settings. Under the base case, the analysis shows that over the 10-year outlook:

  • Victorian prices are projected to fall by about 9%, remaining below the national average, with a larger projected increase in demand due to rapid electrification, helping to keep network prices lower by using network infrastructure more intensively.  
  • Queensland prices show a similar trend to the national outlook, with prices projected to fall by 15%, though there may be slightly more upward pressure on wholesale prices towards the end of the period.
  • South Australian prices are also projected to fall by 15%,but remain slightly higher than the national average due to elevated wholesale costs, though network prices are declining.
  • New South Wales prices follow national trends with prices projected to fall about 14% over the outlook.  
  • ACT prices are projected to decline by 31%, a larger decrease than the national trend, reflecting the territory's Large Feed-in-Tariff scheme which offsets movements in wholesale prices, and a reduction in network prices.  
  • Tasmania maintains the lowest prices of all regions but could see an increase in prices of about 6% towards the end of the period.

Renewable Energy Target (RET) and state-based energy efficiency schemes are expected to have minimal impact on overall prices (around 0.7c/kWh at national level).

Understanding Total Energy Costs

The report introduces the concept of an 'energy wallet' – which describes the total amount a household spends directly on energy, including electricity bills, petrol for cars and gas for heating.

"The traditional way of looking at just electricity bills doesn't tell the full story anymore. As households electrify their cars, heating and cooking, they'll see their electricity usage increase but their total energy costs – their 'energy wallet' – could significantly decrease,’’ Ms Collyer said.

“While the energy wallet modelling doesn’t cover the purchase costs, such as buying an EV, we can assist customers weighing up these decisions by providing them information about the savings they experience if they were to make a decision to incur those up front costs”.

For example, electric vehicle owners could save around $2,000 per year on fuel costs alone, with these savings starting from the date of purchase. Importantly, these benefits don't require complex optimisation of charging times - though households can save even more by charging during sunny periods when solar generation is at its peak.

Critical Success Factors

The report identifies several factors crucial to achieving cost reductions:

  • Timely development of transmission infrastructure
  • Successful integration of renewable energy and storage
  • Effective coordination of household energy resources like solar, batteries, and electric vehicles
  • Well-planned electrification of homes and transport

The AEMC is actively working to support these outcomes through initiatives including our Electricity Pricing Review, which is examining how pricing structures can better support the transition. This work also complements other initiatives such as the government's Consumer Energy Resources (CER) Roadmap.

Ensuring an Equitable Transition  

The AEMC recognises that not all households will have equal access to cost-saving technologies.

"While some households will be able to significantly reduce their energy costs through solar panels, batteries, and electric vehicles, others face barriers to adoption. This highlights the importance of considering equity in policy development," Ms Collyer said.

These barriers include rental arrangements, housing that can't accommodate solar panels or electric vehicle chargers, and the upfront costs of new technology. The analysis emphasises the importance of ensuring the benefits of the transition are shared across all household types.

Looking Ahead

Our analysis shows two main factors will shape energy costs over the coming decade. The first is the significant build of new renewable generation and storage. This new generation, combined with the careful management of coal plant closures, will help moderate electricity prices.

Secondly, while significant transmission investment lies ahead, the impact on electricity prices is expected to be moderated as these are shared across growing electricity use.  

As more households and businesses electrify, leading to a projected 23% increase in electricity consumption, network costs are spread across a larger user base.  

''The potential for lower household energy costs is clear, but it depends on getting the transition right. This means smart, timely investment in infrastructure, effective integration of new technologies, and ensuring the benefits are shared across the community," Ms Collyer concluded.

The full Residential Electricity Price Trends report is available here.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au    

Consultation paper published on allowing AEMO to accept cash as credit support

24 October 2024

The Australian Energy Market Commission (AEMC) has initiated an expedited rule change process in response to an urgent rule change request from Delta Electricity.

The proposed change would allow the Australian Energy Market Operator (AEMO) to accept cash as credit support from market participants in the National Electricity Market (NEM).

This issue has arisen as some generators, particularly those operating coal-fired power stations, are finding it increasingly difficult to obtain traditional forms of credit support due to banks' evolving environmental, social, and governance (ESG) policies.

Currently, NEM participants must provide credit support to AEMO in the form of a bank guarantee or letter of credit from an acceptable lender. Delta, which operates the Vales Point power station in NSW, has reported being unable to secure new credit support arrangements when its current arrangements expire at the end of 2024.

If implemented, the proposed rule change would provide an alternative option for all market participants to meet their credit support obligations. However, there may be potential risks or unintended consequences associated with accepting cash as credit support that need to be carefully considered.

The AEMC is seeking stakeholder feedback on both the problem raised by Delta and the proposed solution.

Key questions include:

  1. Are there issues with obtaining credit support in the NEM?
  2. What are the potential impacts if participants cannot meet credit support requirements under the current arrangements?
  3. Are there any risks or drawbacks to allowing cash as a form of credit support?
  4. Are there alternative solutions that should be considered?

Given the potential implications for system reliability and security, the AEMC is proposing to use an expedited eight-week process to assess this request. Stakeholders can object to this expedited process by lodging a written objection with reasons by 7 November 2024.

Submissions on the consultation paper are due by 21 November 2024. The AEMC encourages all interested parties to contribute their views to inform this important decision.

Visit project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au  
 

Draft rule clarifies AEMO's cyber security role

26 September 2024

The Australian Energy Market Commission (AEMC) has published a draft rule that would formalise the role of the Australian Energy Market Operator (AEMO) in maintaining the cyber security of our electricity system.

The AEMC sets the rules for the National Electricity Market (NEM) and provides independent expert energy advice to Australia’s State and Federal Governments. It is strongly focused on providing a framework for a reliable, sustainable electricity system in addition to affordable electricity prices.

As our energy system becomes increasingly digitised and interconnected, AEMC Chair Anna Collyer says robust cyber security measures are crucial to ensure the reliability and resilience of electricity supply.

"Cyber security is an important enabler for the energy transition. For it to be successful, the associated risks need to be well managed," Ms Collyer said.

"This draft rule aims to provide AEMO with the necessary tools and resources to further bolster the National Electricity Market's resilience against evolving cyber threats."

The draft rule builds upon existing industry efforts, including the Australian Energy Sector Cyber Security Framework (AESCSF), and AEMO's current emergency powers to respond to cyber incidents.  

It proposes four key cyber security preparedness functions for AEMO:

  • Coordinating a NEM-wide cyber incident response plan
  • Supporting energy businesses in cyber incident preparedness
  • Providing expert cyber security advice to government and industry
  • Distributing critical cyber security information to market participants

Ms Collyer explained that these functions are designed to formalise AEMO's existing preparatory and preventative efforts, while complementing their powers to respond to actual cyber security incidents.

"AEMO has been proactively working with industry on cyber security preparedness. This draft rule aims to embed and clarify these efforts, creating a more robust framework," Ms Collyer said.

"By formalising these functions, we're strengthening AEMO's role in cyber security preparation and prevention. This will work alongside their existing emergency powers, further enhancing our electricity system's resilience against cyber threats."

The draft rule follows a rule change request from the Hon. Chris Bowen MP, Minister for Climate Change and Energy, and has been well received by AEMO and the energy industry.

The AEMC invites stakeholder feedback on the draft rule by 7 November 2024, with the final determination scheduled for 12 December 2024.

View the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au   

Related Articles

Australian Energy Sector Cyber Security Framework and resources

AEMC unveils new rules to boost consumer energy resource benefits

15 August 2024

New rules by the Australian Energy Market Commission (AEMC) are set to make it easier for households and businesses to capture value from their consumer energy resources (CER) and exercise greater control over their energy use.

‘CER’ refers to smaller-scale energy resources owned by customers, which can produce, store, or vary how they use energy. There are newer forms of CER such as solar panels, batteries, and electric vehicles, and more traditional assets such as hot water heaters and pool pumps.  

Australia’s energy landscape is being transformed by the uptake of these resources and consumers becoming more engaged in the different ways they can use them.  

By 2030, it’s predicted at least one in eight households will have a battery or electric vehicle, or both. By 2050, that number is expected to rise to one in four. Around one in six free-standing Australian homes have solar panels, with one in two expected by 2040.  

These trends represent an enormous opportunity for Australia’s energy future. CER, along with resources such as neighbourhood batteries, have an important role to play in the power system. They can help reduce overall system costs, improve reliability, and achieve a secure, low-emissions energy supply for all consumers.

The final rules, in response to a request from the Australian Energy Market Operator (AEMO), will introduce the following arrangements.  

  • Large customers will be able to engage multiple energy service providers at their premises more easily, to manage and obtain more value from their CER.
  • Energy service providers for small and large customers will be able to separate and manage 'flexible' CER (such as EV chargers, batteries) from 'passive' loads (like fridges and lights) in the energy market, leading to more product and service options for consumers.
  • Market participants will be able to use in-built measurement capability in technology such as EV chargers and smart streetlights, eliminating the need for separate meters.  

Chair Anna Collyer says these rules are an important enabler in the context of the National CER Roadmap.

‘’They make a series of incremental changes that, alongside other reforms, will unlock substantial benefits from flexible CER for consumers and the system as a whole. "If these resources are integrated well, the power system will operate more smoothly, and consumers and industry will enjoy the benefits of cheaper supply.

"A range of studies has estimated the net benefit of effective integration and coordination of CER to be up to $6.3 billion by 2040," Ms Collyer said. 

This rule change will empower consumers to access new energy products and services, enabling them to maximise value from their flexible CER and better manage their energy use.  

It also aims to promote innovation and competition in the electricity retail sector by simplifying the process of separating and unlocking value from CER.  

For example, these rules will make it easier for retailers to offer households EV charger products with built-in metering and dedicated tariffs. This means consumers could potentially receive separate billing for their EV charging, distinct from their regular household energy use. If they choose, they could also trade excess energy from their EV back to the grid.

The in-built metering arrangements will also make it easier to deploy public infrastructure such as EV chargers and smart streetlights. Modelling shows this could generate benefits of up to $100 million over two decades, including $16 million attributed to emission reductions.  

"We are committed to reforms that pave the way for the innovation required to meet the challenge of integrating CER, knowing that if we do nothing, all consumers will face higher costs," Ms Collyer said.

The AEMC's final determination is part of a broader suite of reforms aimed at supporting the energy transition and unlocking the full potential of CER for the benefit of all consumers.

These reforms are interconnected and wide ranging. They include reviewing pricing structures, speeding up the rollout of smart meters, and improving consumer access to real-time energy data.

''Additionally, we have published draft rules to create greater visibility of price-responsive resources, such as household batteries, to make it easier for them to participate in the market. We think this could help AEMO and networks to operate the system more efficiently, ultimately leading to lower prices and emissions.  

"These reforms are crucial pieces of the CER puzzle. They create opportunities for innovation, helping consumers reduce bills and participate more actively in our energy system, while improving grid management and reducing emissions,’’ Ms Collyer concluded.

Visit the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au 

AEMC proposes stronger consumer safeguards for smart meter rollout

15 August 2024

Australians could soon have more control over their electricity pricing under new proposals aimed at protecting consumers during a nationwide smart meter rollout.

The Australian Energy Market Commission (AEMC) today published a directions paper for stakeholder consultation. The paper outlines the potential for enhanced consumer protections during the accelerated smart meter rollout, including a mandatory three-year consent period for retail tariff changes and requirements for designated retailers to offer flat tariff options.

These proposed safeguards come in response to the draft determination published on 4 April 2024.  

While a broad range of stakeholders acknowledged the critical role smart meters will play in the future energy system, they also highlighted the importance of addressing potential customer impacts following smart meter installations, particularly regarding retail tariff variations.  

AEMC Chair Anna Collyer emphasised that we have heard the community's concerns about unexpected tariff changes.

''These proposed safeguards aim to give customers more control and choice over their energy pricing while still enabling the important rollout of smart meter technology.

“With the right frameworks in place, an accelerated smart meter rollout will help to ensure all customers see the benefits of a more efficient, lower-cost, and decarbonised energy system sooner,'' she said.  

The directions paper proposes two key additional consumer safeguard measures:

  1. A new explicit informed consent requirement – customers would be required to give their explicit informed consent for retailers to change their retail tariff following a smart meter deployment. This right would last for three years after the customer receives the smart meter.
     
  2. A mandatory flat tariff option – certain retailers would be required to make a flat tariff option available to all customers. This measure would be implemented by jurisdictions.

These new measures build on protections outlined in the AEMC's April draft determination, which included 30 business days' notice before retail tariff changes, information to help customers understand new tariffs, and historical bill comparisons where available.

"We're seeking to strike a balance between enabling the rollout of this important technology and ensuring strong consumer protections are in place. Social licence is critical for realising the full benefits of smart meters," she said.

The AEMC is inviting stakeholder feedback on the proposals by 12 September 2024. You can register here for a public forum will be held on 29 August from 2-3pm AEST.  

View the project page for more information and contact details. 

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au 

AEMC launches major review to shape consumer-centric pricing

25 July 2024

The Australian Energy Market Commission (AEMC) today announced a comprehensive review that puts consumers at the heart of future electricity pricing, products, and services.

The Electricity pricing for a consumer-driven future Review will examine how the rapidly evolving energy landscape can best serve all Australians in an era of increasing consumer energy resources (CER).

AEMC Chair Anna Collyer emphasised the importance of this forward-looking initiative.

''As we see more households adopting technologies like solar panels and batteries, it's crucial that our electricity pricing, products, and services evolve to meet changing consumer needs.

''This Review will take a fresh look at how we can deliver the best outcomes for all consumers across the electricity supply chain,'' she said.

The Review comes at a critical time, with studies estimating that effective integration of CER could deliver net benefits of up to $6.3 billion by 2040. Realising these benefits hinges on offering consumers the right mix of products and services.

“Effectively integrating CER resources into the wider energy system will help to reduce overall system costs, improve reliability, and achieve a secure, low-emission energy supply for all consumers.

“The key to achieving these benefits is offering consumers the right products and services, as well as clear information, choice, and appropriate protections,” Ms Collyer explained.  

The AEMC's Review will consider market arrangements that provide consumers with a range of appropriate products and services, and prices to suit their needs and preferences. It will also examine the roles of distribution networks and retailers in enabling these offerings and ensuring efficient outcomes.

"We're not just looking at those who have adopted new energy technologies. This Review will consider how to deliver benefits and protections for all consumers, whether or not they have CER at home,'' Ms Collyer said.

The AEMC has released draft terms of reference for the Review and is inviting stakeholder feedback by Thursday, 22 August.  

These submissions will inform the final terms of reference, to be published as part of a consultation paper by November 2024.  

''We're committed to conducting this Review in an open and collaborative manner. Input from consumers, industry, and other stakeholders will be crucial in shaping a future electricity market that works for everyone."

The AEMC expects to release the final report in early 2026, providing a roadmap for a more consumer-centric, efficient, and sustainable electricity market. Visit the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au 

Virtual Power Plants to compete with big generators to drive down prices

25 July 2024

The Australian Energy Market Commission (AEMC) has released a draft paper that proposes allowing Virtual Power Plants (VPPs) to compete directly with large-scale generators in the energy market, to the benefit of all consumers through significant cost savings, lower emissions, and reduced energy prices.

The draft determination also extends beyond VPP's to include community batteries, flexible large loads, and other price-responsive small resources such as such as back-up generators, marking a significant shift in Australia's energy landscape.

AEMC Chair Anna Collyer said this work represents a pivotal moment in our energy market's evolution.

''By integrating VPP's and similar resources, we're not just enhancing market efficiency; we're empowering consumers and paving the way for a more sustainable energy future,'' she said.

Currently, there is no mechanism for the market to predict how these resources will respond to daily price fluctuations.  

This gap in market knowledge creates significant operational challenges for the Australian Energy Market Operator (AEMO) and could lead to costly system operations.

''Fully integrating these resources will allow energy, security, and reliability services to be provided more efficiently,'' explained Ms Collyer.

''Over time, this integration will reduce the need for large scale generation and storage infrastructure, ultimately decreasing costs and emissions for all consumers.''

Recent modelling indicates that VPP market participation could result in cost savings of $834 million between 2027 and 2050, benefiting all customers through more efficient market operation. This underscores the critical importance of encouraging VPP participation.  

The AEMC is therefore calling on governments to recognise these resources officially. Once they participate in dispatch, they will be as technically capable as any other generator and should be eligible for schemes such as the Capacity Investment Scheme.

To encourage broad participation, the draft determination includes a mechanism to provide payments to early entrants.  However, recognising that a mechanism in the rules may not be the ideal fit, the AEMC is also calling on the Australian Renewable Energy Agency (ARENA) to consider a trial grant program for early entrants.  

Ms Collyer says the reform isn't just about integrating new technology but also about reimagining our approach to energy generation and distribution.  

''By incentivising early participants, we're accelerating the transition to a more responsive, efficient, and sustainable energy market," she said.

The draft determination also addresses the current gap in the market knowledge regarding the impact these resources are having on operational forecasting. Under the proposal, AEMO and the Australian Energy Regulator would have new monitoring and reporting functions to provide additional transparency.

This rule change is a key component of a broader reform package aimed at integrating consumer energy resources.  It represents the primary focus in the AEMC’s work program for integrating these resources into the wholesale electricity market.

''By making price-responsive behaviour visible, we're allowing the market to operate more efficiently. It's like giving the system a pair of glasses – suddenly, it can see and respond to consumer actions that were previously invisible.  

''This improved visibility will lead to more efficient generation use, lower system costs, and potentially reduced energy prices for all consumers. It's a win-win that doesn't require changing behaviour, just smarter market operation,'' Ms Collyer said.  

The AEMC invites stakeholders to provide feedback on this draft determination. The consultation period will run until 12 September, with a final determination expected by the end of the year.

Visit the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au 
 

Panel released final recommendations on the form of the reliability standard, APC

27 June 2024

The Reliability Panel has found the current form of the reliability standard is well suited to ensure high levels of system performance as the National Electricity Market (NEM) transitions to net zero emissions.

The assessment is detailed in a final report following extensive stakeholder consultation, which overwhelmingly supported maintaining the current form of the reliability standard.

The reliability standard, a cornerstone of Australia's energy system, ensures sufficient electricity supply to meet consumer demand and determines other key market settings, such as the market price cap.

Tim Jordan, chair of the Reliability Panel, emphasised the importance of forward looking analysis:

''As we navigate an unprecedented market transformation, understanding future reliability risks is crucial. 

''Our modelling provides critical insights about the future needs of the power system, particularly about the storage needed to manage reliability risks," he said.

The Panel's innovative modelling tested artificial extreme scenarios where there are not enough resources to meet the needs of customers.

Results demonstrated that while the risk profile will change as we rely more on variable renewable generation, the current form of the reliability standard will continue to provide the signal to invest in and operate the assets needed to manage the risk of reliability shortfalls. 

The Panel acknowledges the challenges faced by the Australian Energy Market Operator (AEMO) in managing reliability and supports AEMO's efforts to improve communication of the reliability standard.

The final report also recommends maintaining the current form of the administered price cap which acts as a safety net by capping wholesale prices following prolonged periods of extreme prices.

The Panel will regularly review the price cap to ensure generation and storage continue to contribute to reliability during rare emergencies. 

View the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au.

Reliability Panel finds NEM performance stable in annual review

27 June 2024

The Reliability Panel today released its Annual Market Performance Review, assessing the reliability, security, and safety of the National Electricity Market (NEM) during the 2022-23 financial year. 

The AEMC sets the rules for the National Electricity Market and provides independent expert energy advice to Australia’s governments. The AEMC’s Reliability Panel monitors and reports on the reliability, security, and safety of the electricity system and performs a range of other functions.

Despite the challenges faced by the energy sector, Reliability Panel chair Tim Jordan says the review found the NEM's performance was acceptable. 

''The NEM has performed acceptably in terms of reliability, security, and safety, but more investment is crucial to address the risks to the outlook and continue to deliver reliably for consumers,'' Mr Jordan said.

The review showed there were no breaches of the reliability standard or interim reliability measure in FY2023. However, the latest 10 year reliability forecast from the Electricity Statement of Opportunities indicated risks to maintaining reliability in the medium term. 

Security performance in the NEM was also acceptable during the reporting period. The number of system incidents remained steady compared to FY2022, with fewer activations of the reliability emergency reserve trader, and stable procurement costs for network support and control ancillary services and system restart ancillary services.

''The Panel notes increased climate variability could lead to more market events and pose a growing risk to system security in the future.

''The recently updated transitional security frameworks should help address security risks as we move to a renewables-dominated system,'' Mr Jordan explained.

Key events mentioned in the report included two major Supervisory Control and Data Acquisition (SCADA) outages in March and April 2023, severe weather events in South Australia in November 2022, and the introduction of the very fast raise and very fast lower frequency control ancillary service markets in October 2023. 

No safety issues were identified as a result of the management of the power system.

The Annual Market Performance Review is conducted by the Reliability Panel in line with the National Electricity Rules and the terms of reference issued by the AEMC. 

The review draws upon data from the Australian Energy Market Operator, the Australian Energy Regulator, jurisdictional regulators, market participants, and other sources.

Please visit the project page for more information and contact details.

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au.
 

Final rule to accelerate grid connections for renewable energy projects

27 June 2024

The Australian Energy Market Commission (AEMC) has published a final rule that creates a more clear and pragmatic process to speed up grid connections for new renewable energy generation and storage.

The R1 assessment requires generators and large-scale storage providers to demonstrate they can meet performance standards before being registered in the national electricity market. 

A lack of clear obligations and timeframes were identified in the connections process following extensive industry collaboration as part of the Connection Reform Initiative (CRI). It led to a rule change request by the Clean Energy Council (CEC) which said the issues were causing long delays and investment uncertainty. 

After substantial stakeholder engagement, the AEMC has made a more preferable final rule to the CEC’s proposal that addresses the gaps and creates more certainty for all parties.  

It includes the removal of unnecessary barriers to timely connections and clearer obligations on both the connection applicants, as well as the Australian Energy Market Operator (AEMO) and network service providers (NSPs). 

Additionally, there is an increased focus on transparency during the R1 assessment, that will require AEMO to update its registration information resource and guidelines.

AEMC Chair Anna Collyer said the final rule strikes the right balance for the transition. 

“With nearly 600 renewable energy generation and storage projects currently in the connection queue, it is critical that we speed up the process without compromising system security.

“The final rule will help bring safe, clean and more affordable electricity to Australian homes and businesses sooner.

“It also aims to create greater certainty for the future clean energy investors that are needed to reach the nation’s emissions reduction targets,” she said.  

The rule commences on 11 July 2024, with AEMO required to update its registration information by no later than 1 March 2025.

View the project page for more information and contact details.  

Media: Jessica Rich, 0459 918 964, media@aemc.gov.au.

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