The Australian Energy Market Commission (AEMC) has begun a project which looks at potential changes to the management of electricity networks to accommodate the increasing adoption of distributed energy resources (DERs), such as rooftop solar.
The AEMC released an approach paper for its ‘Distribution Market Model’ project, which sets out the opportunities and challenges of DERs, as distribution networks move away from facilitating one-way flows to more dynamic, two-way flows of electricity.
The project is not intended to be a prediction or pathway for future regulatory reform, but rather an exploration of possible distribution market design options that may be available to harness the opportunities presented by DERs, while addressing any technical impacts as they arise.
The Distribution Market Model project forms part of the AEMC’s technology work program, which explores the flexibility and resilience of energy market arrangements in responding to technological change.
The AEMC said it needed to have a strong understanding of new market dynamics to inform its rule-making work and market development advice to governments.
The AEMC said it welcomed submissions on the approach paper up to 19 January 2017 and would hold individual meetings with interested stakeholders.
The AEMC will also hold a series of public workshops on this project in early 2017.
Input from stakeholders will be used to inform the final report, which will be published in mid-2017.