AEMC draft rule to increase transparency with new generation projects

A new draft rule has been published by the AEMC which will give developers better and more current information regarding new generation projects.

The rule intends to help businesses make better investment decisions on where to locate new generators and assess project viability.

AEMC Executive General Manager Security and Reliability, Suzanne Falvi, said that the draft rule is a good outcome for both developers of new generation and electricity consumers. 

“More than 50GW of new wind and solar projects are in development, which is roughly equivalent to the national electricity market’s entire current capacity.

“The smooth entry of these new generators relies on developers having up-to-date information about where and when other developers are proposing to locate generators to help avoid traffic jams in generation.

“More efficient decisions on where to invest in new generation ultimately benefits consumers by promoting reliable supply at lower costs.”

Currently, as part of the grid connection process, developers provide transmission network businesses with key project information such as the type of generator proposed, the technology it uses, the maximum power it can generate, and the project’s timing. 

The draft rule requires transmission businesses to share this information with the market operator, AEMO. This will enable AEMO to publish more detailed, up-to-date data on proposed and existing generators on its generation information page on its website.

The Commission’s draft rule also extends 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.

AEMO, which is receiving an unprecedented volume of generation enquiries, welcomed the draft rule.

AEMO Chief System Design and Engineering Officer, Dr Alex Wonhas, said, “Australia is experiencing unprecedented transformation across the energy sector, including a large growth of new generators connecting to the grid.

“This draft rule change will further help developers access the information they need to enable prudent investment decisions to participate in our energy future,” he said.

The Commission has set out an implementation timeframe that would enable the changes to be implemented in stages by end February 2020.

Submissions to the draft determination are due by 12 September 2019. 

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