Overview

Type
Sector
Electricity
Segment
Distribution
Region
Queensland
New South Wales
Australian Capital Territory
Victoria
South Australia
Tasmania
Northern Territory
Status
Current
Date initiated
Effective date
Date completed

On 30 June 2022 the AER published its final DER integration expenditure guidance note. The guidance note aims to ensure that electricity distribution networks prepare business cases for expenditure to accommodate DER in a consistent and transparent manner, so that customers only pay for network investments that deliver them benefits.

Background

The AER sought views from stakeholders to develop guidance that can be provided to distribution network service providers (DNSPs). The consultation paper Assessing Distributed Energy Resources (DER) Integration Expenditure was released on 19 November 2019 and considered how the AER should assess DNSPs’ proposed expenditure to manage the increasing challenge of accommodating DER on their networks.

The AER invited written submissions to the consultation paper between 19 November 2019 and 20 January 2020. In response to these submissions, the AER commissioned the CSIRO and CutlerMerz to conduct a study into potential methodologies for determining the valuing of DER (VaDER).

Stakeholders were invited to attend two public forums in September 2020, which provided an overview of the draft VaDER report and an opportunity to ask questions to help inform their submissions. The AER received submissions from a range of stakeholders, including DNSPs, consumer group representatives, industry organisations and consultants. The AER received the final VaDER report from the CSIRO and CutlerMerz in early November 2020, and published the final report, an accompanying FAQ document and stakeholder submissions later that month.

The AER formalised the recommendations of the VaDER study in its draft DER integration expenditure guidance note, which was published in July 2021. The AER hosted an online forum for interested stakeholders in August 2021 and received 16 written submissions.