Consumer Energy Resources: Can Australia stay ahead?

As Australia, alongside the global community, accelerates its energy transition, all stakeholders must take an active role. This includes developers, network operators, regulators, and market bodies. AEMO is actively exploring solutions for sustainably managing increasing CER within the low-voltage distribution network. This includes evaluating the evolving role of Distribution Network Service Providers (DNSPs) and the roles and responsibilities of parties who can deliver Distribution System Operator (DSO) duties capable of handling the complexities of a more decentralised energy system.

To progress informed recommendations for CER integration that supports reliable, secure, affordable, and least cost transition to a clean energy future, the Energy Security Board (ESB) recently established a CER Taskforce. The Taskforce was to investigate technical, operational, commercial, regulatory, and other relevant aspects of CER integration to collectively and cohesively make recommendations and decision-making frameworks that inform policy. The Taskforce split different aspects of CER integration required to be investigated into multiple workstreams under smaller groups called CER Working Groups (CERWG). One of such workstreams is the DSO Workstream that focuses on Distribution System and Market Operation and is led by the Australian Energy Market Commission (AEMC).

The DSO Workstream will make evidence-based recommendations to the CERWG on the evolving and new roles and responsibilities of Network Service Providers (NSPs), industry participants, consumers, and Australia’s energy market bodies that are required in a high-penetration CER system. The AEMC envisages that this will be carried out by identifying the capabilities required across these parties and the interfaces between them and any other relevant parties as they perform their recommended role.

The AEMC has engaged CutlerMerz to support the development of a functional map that helps lay the foundation of the defining the roles required to operate the energy value-chain in a high-CER future.

The report describes the approach taken to perform the functional mapping by explaining the driving force behind the change (CER adoption), the stakeholder group responsible (AEMC and the CER Taskforce), and the overall objective (defining DSO functions).

Watch this space! As we provide updates on the status and impact of this seminal piece of work.