The Australian Energy Regulator (AER) has published its final Guidelines to make the Integrated System Plan (ISP) actionable.
The new guidelines aim to provide certainty, transparency and accountability for the Australian Energy Market Operator (AEMO), transmission businesses, and stakeholders to promote efficient investment in electricity services for the long term interests of consumers.
The guidelines will come into effect through the 2022 ISP and will provide clear requirements around the:
- economic analysis that AEMO and transmission businesses will apply in the ISP and to ISP projects
- consultation and forecasting processes that AEMO will apply when developing the ISP.
The guidelines were developed in close consultation with stakeholders and seek to provide AEMO, in developing the ISP, with flexibility in how it identifies the optimal pathway for the National Electricity Market. However the guidelines also provide AEMO with requirements to:
- engage closely with stakeholders
- be transparent and explain how it applies its judgement
- undertake a robust market-wide cost benefit analysis.
The guidelines are part of the new ISP framework that was implemented through changes to the National Electricity Rules.