Small Generator Framework Design
Small Generator Framework Design update
AEMO developed and consulted on the design for a Small Generation Framework during 2010. The outcome of that work included a Small Generation Framework Design paper which included 11 key principles.
During 2011 the IEC and RMEC considered small generation issues in a paper prepared by Energex and Ausgrid (Gap Analysis Paper - Small Generation in the Market) which incorporated the 11 principles in AEMO’s Small Generation Design Framework and discussed related issues. As a consequence of review of the Gap Analysis Paper and further discussion;
- AEMO is progressing the 11 principles in the framework design (initially on principles 1, 2, 3, 7 and subsequently 4 - 6, 8 – 11); and
- Distributors are considering the balance of matters in the Gap Analysis Paper.
Progress with each of the 11 design principles in the small generation framework is summarised in the table below.
Small Generation Framework Design principles
Principle |
Status/update |
1: The registration of a Market Generator (the financially responsible Market Participant for one or more small generating systems) should be separated from the classification of each market generating unit to facilitate the role of third parties in managing small generators. |
In progress - Covered by Rule change proposal submitted to AEMC December 2011 |
2: The classification process for small generator systems should be streamlined and simplified to facilitate the role of third parties in managing small generators and minimise the transaction costs for small generators participating in the NEM. |
In progress - Covered by Rule change proposal submitted to AEMC December 2011 |
3: The registration and classification fees levied on small generator applicants should reflect the cost of processing small generator applications. |
AEMO action complete - Dealt with in 2011 NEM fee review |
4: The extent to which metering obligations in shared metering installations with small generators can support competitive market arrangements should be explored. |
It is now feasible for this work to commence following the AER’s publication of their final decisions on the reviews of exempt retailer and exempt network frameworks. |
5: The regulatory framework for subtractive metering of small market generators should be clarified and, if necessary, differentiated from subtractive metering arrangements in embedded networks generally to facilitate the settlement of small market generators in the NEM. |
It is now feasible for this work to commence following the AER’s publication of their final decisions on the reviews of exempt retailer and exempt network frameworks. |
6: Appropriate connection point standing data for all small generators should be collected in MSATS in order to, where necessary, more accurately forecast the effect of small generators on the NEM, ensure the integrity of NEM participant fee recovery processes and facilitate connection point transfers. |
In progress - Covered by Small Generation & Standing Data project - System changes targeted for Nov 2013 release |
7: The MSATS system should enable transfers of financial responsibility for small generators between market participants to facilitate choice of market participant for small generator components. |
In progress - Covered by Rule change proposal submitted to AEMC December 2011 |
8: Small generators should be entitled to adequate compensation for costs and losses incurred in responding to a direction. |
Low probability of occurring or being a material issue – monitor for any change in these circumstances |
9: Geographically‐dispersed small generators and loads should be permitted to aggregate in AEMO’s systems and processes to enable groups of small generators, or groups of small generators and loads, to offer market ancillary services. |
Pursue after current rule change is implemented and see what the resultant uptake is. An issue on which AEMO would be pleased to receive feedback during consultation by the AEMC on current rule change proposal |
10: An information resource for small generators should be developed to improve stakeholder understanding of the opportunities and requirements for small generator participation in the NEM. |
Subject to resolution of items 4 and 5 above. |
11. AEMO should work with the AER and the AEMC to ensure an appropriate, relevant and consistent approach, where possible, to the review of the NSP exemption process in relation to small generators. |
AER has published a final decision on the review of exempt network frameworks. |
Small Generator Framework Design
The Framework Design sets out principles that aim to minimise barriers to cost-effective small generator participation in the NEM. It encompasses registration, metering & settlement, power system security & reliability and information provision. The principles set out in this Framework Design will guide AEMO’s approach to addressing unwarranted barriers to small generator participation in the NEM in the future.
This paper is the culmination of extensive industry, government and broader stakeholder consultation that began with the release of the AEMO discussion paper ‘Minimising barriers to cost-effective small generator participation in the NEM’ in December 2009. In March 2010 AEMO established a Small Generator Reference Group to assist in the development of the Framework Design. A draft of the Framework Design was published in May 2010 and received 11 submissions.
AEMO looks forward to continued engagement with stakeholders about how the issues identified in this Framework Design are addressed in the future.
For any queries regarding this consultation please contact Roy Kaplan on 03 9609 8353 or roy.kaplan@aemo.com.au.
| Small Generator Framework Design 02 Aug 2010 | filename: 0110-0062.pdf |
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Small Generator Framework Design Principles Consultation
Date of Notice
This Notice of consultation was issued on 25 May 2010.
Objectives of the Consultation
The objectives and background of the consultation are outlined in the attached consultation paper.
Invitation to make Submissions
Submissions to the framework principles paper are sought by 11 June 2010.
Contact Details
For further information on this consultation please contact Roy Kaplan at Roy.Kaplan@aemo.com.au.
| Small Generator Framework Design Principles Consultation 26 May 2010 | filename: 0118-0004.pdf |
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| Small Generator Framework Design Principles 26 May 2010 | filename: 0110-0058.pdf |
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SUBMISSIONS
| Bill Gardner
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| Energy Retailers Association of Australia
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| National Generators Forum
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TRUenergy
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| United Energy Distribution
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Submissions to small generator discussion paper - zip
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Small Generator Reference Group
Following the release of the discussion paper ‘Minimising barriers to cost-effective small generator participation in the NEM’ in December 2009, AEMO is now calling for nominations to the Small Generator Reference Group. The aims of the Reference Group are:
- To assist to define the requirements of small generators for integration into the NEM in a future small generator framework;
- To address the issues identified by AEMO in the small generator discussion paper and any other relevant issues which arise from time to time; and
- To provide expertise and advice on small generators and small generator proponents, including but not limited to technical characteristics, market behaviours, commercial matters and relevant NEM rules and procedures;
The proposed membership of the Reference Group aims to encompass the broad stakeholder base interested in this subject. One representative is sought from each of the following stakeholder groups:
- Small generator proponent
- Demand side participant
- Consumer representative
- Generation sector representative
- Retail sector representative
- Network sector representative
- Distributed energy research representative
- AER representative
- AEMC representative
It is expected that the Reference Group will meet three times in the lead-up to the publication of the requirements definition in mid 2010. The first meeting of the Reference Group will be held on Wednesday, 7 April 2010 from 1:00pm to approximately 5:00pm at a location to be determined. Videoconferencing facilities at AEMO’s offices in Melbourne, Sydney and Brisbane will be available to facilitate the involvement of interstate Reference Group participants. Expenses incurred during participation in the group will be borne by the respective participant.
The Terms of Reference for the Reference Group are attached. Nominations will close on Friday 26th March 2010. On Monday 29th March 2010 membership of the Reference Group will be announced and the agenda and papers for the first meeting of the Reference Group will be distributed to members. Nominations and further questions should be addressed to Roy Kaplan, Manager Metrology Regulation (roy.kaplan@aemo.com.au or 03 9609 8353).
| Small Generation Reference Group - Terms of Reference 15 Mar 2010 | filename: 0000-0167.pdf |
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Minimising barriers to cost-effective small generator participation in the NEM : Discussion Paper
The discussion paper ‘Minimising barriers to cost-effective small generator participation in the NEM’ seeks to identify issues surrounding small generator (also known as embedded or distributed generator) participation in the NEM wholesale energy market and other related markets. The AEMC in its recent ‘Review of Energy Markets in Light of Climate Change Policies’ endorsed AEMO initiatives to facilitate the integration of small embedded generators in the NEM.
The objective of the discussion paper is to assess whether current arrangements realise the potential value of small generators in the NEM and to elicit NEM participant and stakeholder views on a range of matters related to integrating small generation into the NEM more efficiently. The discussion paper will be distributed to market participants, prospective market participants and other interested parties for comment.
This notice informs all Registered Participants, Intending Participants, and interested parties (Consulted Persons) that AEMO is conducting a consultation on matters related to the integration of small embedded generation into the National Electricity Market (NEM) as outlined in the attached discussion paper Minimising barriers to Cost Effective Small Generator Participation in the NEM.
This consultation is not a formal consultation under clause 8.9 of the National Electricity Rules (Rules) as it is not intended to establish new NEM procedures or other instruments.
Date of Notice
This Notice of consultation was issued on 15 December 2009.
Objectives of the Consultation
The objectives and background of the consultation are outlined in the attached letter.
The Consultation Process
The following table contains an outline of the consultation process, including key dates. Please note that these dates are proposed dates and may be subject to change by AEMO.
Process |
Date |
Melbourne forum (L12, 15 William St) to present discussion paper framework. |
1pm, 19 January 2010 |
Sydney forum (L22, 6 O’Connell St) to present discussion paper framework |
1pm, 20 January 2010 |
Closing date for submissions received in response to this consultation |
12 February 2010 |
Publication of summary of submissions |
March 2010 |
Publication of draft requirements definition |
July 2010 |
Invitation to make Submissions
Submissions to the discussion paper are now closed.
Forums
AEMO held two forums, one in Melbourne and another in Sydney, to present to consulted persons the framework of the discussion paper. Dates and venues for the forums are identified in the table above.
Contact Details
For further information on this consultation please contact Roy Kaplan at Roy.Kaplan@aemo.com.au.
DOCUMENTS
| Cover Letter to Discussion Paper - Minimising barriers to cost-effective small generator participation in the NEM 16 Dec 2009 | filename: 0118-0002.pdf |
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| Minimising barriers to cost-effective small generator participation in the NEM : Discussion Paper 16 Dec 2009 | filename: 0118-0001.pdf |
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| Minimising barriers to cost-effective small generator participation in the NEM : Forum Presentation - Jan 2010 27 Jan 2010 | filename: 0118-0003.pdf |
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SUBMISSIONS
| CitiPower Powercor
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| EnergyResponse
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| United Energy Distribution
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Submissions to small generator discussion paper - zip
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