Rule Change: Completed
Overview
On 27 June 2024, the Australian Energy Market Commission (AEMC) made a final determination and final rule that will improve investment certainty in the pre-connection registered data (R1) process by addressing several gaps and hindrances to timely connections. This is in response to the Clean Energy Council’s (CEC) rule change request that identified several issues with the R1 process.
The final rule will:
- formalise the commencement and conclusion of the R1 process through timely notifications by NSPs and AEMO, and guidance on what constitutes a complete R1 package
- clarify the obligations of all parties during the R1 process and introduce a timeframe for AEMO to determine whether it is satisfied of a plant's capability to meet or exceed its technical performance standards
- require AEMO and NSPs to provide written reasons for additional data and information requests during an R1 assessment at the outset, alongside permitting connection applicants to request further reasons where more clarification is required to address the system security risk identified
- remove barriers to sensible revisions of a generator's performance standards, reducing the likelihood of unnecessary engineering work
- allow AEMO to conditionally register generators to streamline connections, but only after it has consulted with industry as to when and how conditional approval may be used
- require AEMO to add new information in its registration information resource and guidelines to describe how it assesses plant capability and considers adverse power system impacts in the R1 process.
Our final rule commences on 11 July 2024, with a requirement for AEMO to update its registration information resource and guidelines by no later than 1 March 2025.
Our final rule addresses the key issues raised by the proponent and other stakeholders
The rule change request identified that the R1 due diligence process can be lengthy due to generators often having little clarity as to why a large number of modelling iterations are needed to demonstrate that the generator will perform as expected.
We hosted three technical working group meetings and a number of bilateral discussions to understand the key factors that cause delays. Through these discussions, we identified that this rule change should focus on improving transparency, codifying obligations on connecting parties, and providing flexibility to agree to pragmatic changes to generator performance standards.
Background
On 17 May 2023, the Commission received a rule change request from the Clean Energy Council (CEC) to amend the National Electricity Rules (NER). The CEC’s rule change request recommended changes:
- to provide generation applicants more certainty on the way AEMO and NSPs assess and approve a generator’s detailed design and R1 modelling packages
- to enable more efficient allocation of risks and costs between NSPs and generators to manage system security risks identified at the R1 stage
- to incentivise investment in more scale and scope-efficient system security solutions by NSPs where it would lead to lower costs than individual actions by generators
- to introduce a new facilitated review process to manage intractable issues that emerge between generators, NSPs and AEMO.
The Commission published a consultation paper on 17 August 2023. We received 28 submissions to the paper and held two technical working group meetings in December 2023 and January 2024 to seek stakeholder views on a solution that would better meet the NEO.
On 7 March 2024, the Commission published a draft determination. We received 17 submissions to the draft determination.