Assessing Distributed Energy Resources Integration Expenditure

Date initiated: 
19 November 2019
AER General Inquiries


The AER is seeking views from stakeholders to develop guidance that can be provided to Network Distribution Service Providers (DNSPs). The consultation paper Assessing Distributed Energy Resources (DER) Integration Expenditure was released on 19 November 2019 and considers how the AER may assess DNSP’s proposed expenditure to manage the increasing challenge of accommodating DER on their networks. In particular, the paper considers:

  • the current and predicted effects DER is having on networks,
  • the AER’s current approach to assessing DER integration expenditure, and
  • whether our current set of expenditure assessment tools are fit for purpose both now and into the future.

DER integration is an emerging area of expenditure. This consultation is part of our continuous review of our regulatory toolkit for assessing electricity determinations and will support consumers to pay no more than necessary, for the safe and reliable distribution of electricity. More details on the techniques we currently apply to assess a distributor’s expenditure assessment proposals is provided in our Expenditure forecast assessment guideline.

We invited written submissions between 19 November 2019 to 20 January 2020. In response to these submissions, the AER commissioned the CSIRO and Cutler Merz to conduct a study into potential methodologies for valuing DER. This study is nearing completion, with the draft report due to be released in early September 2020 for stakeholder consideration.

Stakeholders are invited to register to attend either of two public forums (to be held via a web platform) to take place in mid-September 2020. The purpose of these forums is to provide stakeholders with an overview of the draft report and an opportunity to ask questions to help inform their submissions.