AER - Explanatory Statement - Proposed financeability guideline - July 2024

The Australian Energy Regulator (AER) has released its proposed financeability guideline for consultation. This is a new requirement for the AER following a final rule change from the Australian Energy Market Commission (AEMC). 

The Guideline sets out how we will test for the financeability of transmission projects that form a key part of the transition to net zero by 2050. The proposed guideline applies to transmission network service providers (TNSPs) that are undertaking large infrastructure projects set out in the optimal development path from the Australian Energy Market Operator’s (AEMO) Integrated System Plan (ISP).

The financeability guideline provides detail on how we will assess a TNSP’s request for an adjustment to cashflows, including the financial metrics to be used in our assessment.  

Submissions on the proposed guideline closed on 28 August 2024.