On 26 May 2016, the Australian Energy Market Commission (AEMC or Commission) made a rule to amend the definition of a ‘generating unit’ in the National Electricity Rules (NER) to 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 Commission considers that the rule will, or is likely to, contribute to the achievement of the National Electricity Objective (NEO) since 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.

The final rule is the same as the proposed rule. It will commence on 26 May 2016.

Background

On 11 February 2016, AEMO made a request to the AEMC seeking to amend the definition of the term ‘generating unit’ in Chapter 10 of the NER and omit clause 2.2.1(b) of the NER. This request arose from findings in the AEMC’s Integration of Energy Storage report.

The Commission was of the view that the Rule Change Request was a request for a non-controversial Rule. Accordingly, the Commission intended to expedite the Rule Change Request under section 96 of the National Electricity Law (NEL), subject to any written requests not to do so. The closing date for receipt of written requests was 28 April 2016. No objectives to the expedited process were received. Accordingly, the Rule Change Request was considered under an expedited process under.

On 14 April 2016, the AEMC published a consultation paper on the rule change request. Stakeholders were invited to provide comment by 12 May 2016. Seven submissions were received, all of which supported the proposed amendments. These submissions can be found below.