Customer export curtailment value methodology

Sector: 
Segment: 
Status: 
Date initiated: 
28 October 2021
Contact: 
AER General Inquiries AERInquiry@aer.gov.au

Overview

On 12 August 2021, the AEMC published its Access, pricing and incentive arrangements for distributed energy resources final determination. The determination changes the energy rules with the aim to integrate more distributed energy resources (DER) such as small-scale solar, batteries and electric vehicles into the grid. The rule change requires distribution businesses to plan for the provision of export services and strengthens customer protections and regulatory oversight by the AER.

The AER is responsible for developing and consulting on the customer export curtailment value (CECV) methodology to be used to calculate CECVs each year. CECVs will capture the detriment to customers and the market when DER exports are curtailed and help guide efficient levels of investment for export services. The AER is required to publish the initial CECV methodology and values calculated in accordance with the CECV methodology by 1 July 2022. The CECV methodology will compliment our guidance note for assessing DER integration expenditure.

On 28 October 2021 the AER released an issues paper seeking feedback on the development of the CECV methodology. We received 16 submissions.