AER commences consultation on Customer Export Curtailment Value (CECV) Methodology issues paper

The Australian Energy Regulator (AER) has commenced consultation on its development of the customer export curtailment value (CECV) methodology. CECVs will capture the detriment to customers and the market when exports to the grid from Distributed Energy Resources (DER), such as electricity generated from solar panels, are curtailed by distribution networks. CECVs can help guide the efficient levels of investment by networks for export services.

The AER is required to develop the CECV methodology and publish values following the Australian Energy Market Commission’s Access, pricing and incentive arrangements for distributed energy resources rule change, which was published on 12 August 2021. The rule change aims to integrate DER, such as small-scale solar, batteries and electric vehicles more efficiently into the electricity grid. Importantly, it recognises that export services – customers using the grid to export the energy they generate – are one of the key services distribution networks provide. The AER is required to publish the CECV methodology and initial CECV estimates by July 2022 and update the CECV estimates annually.

The AER has published an issues paper seeking feedback on the development of the CECV methodology including:

  • how we should interpret CECV and the value streams that CECV should capture
  • how CECV relates to network investment for export services and export pricing
  • issues with estimating CECVs, including different modelling approaches available to us

Submissions on the issues paper will be used to inform the draft CECV Methodology which is expected to be published for further consultation in early 2022.

Invitations for submissions

The AER welcomes submissions on this CECV methodology issues paper by close of business 17 December 2021.

Stakeholder forum

We will be hosting an online public forum to discuss the CECV methodology on 29 November 2021 at 2pm (AEDT). Registrations for the online forum are open until 22 November 2021 and can be made via email to AERInquiry@aer.gov.au. Invitations will be sent to registered attendees after this date.

Sector: 
Segment: 
Issued date: 
28 October 2021
AER reference: 
AC 167/21
Contact: 
AER General Inquiries AERInquiry@aer.gov.au