Updating instruments for regulated stand-alone power systems

Sector: 
Segment: 
Status: 
Date initiated: 
18 May 2022
Effective date: 
1 August 2022
Contact: 
General enquiries - SAPS, General enquiries - SAPS aerregulatedsaps@aer.gov.au
AER reference: 
AER65303

Overview

A stand-alone power system (SAPS) is a system that generates and distributes electricity but is not physically connected to the main electricity grid. A SAPS can come in various forms, but for a residential customer it typically comprises of one or more renewable power generation units, a battery, and back-up generation. For some customers, this set-up will deliver safe and reliable power at a lower cost than connecting to the national grid.

On 24 February 2022, the Australian Energy Market Commission published new rules allowing distributors to provide SAPS to existing customers, and to offer to connect new customers to existing distributor-operated SAPS (also called regulated SAPS) where it is more economically efficient than connection to the interconnected national electricity system.

Ahead of the implementation of the rule change on 1 August 2022, we are required to review, and where necessary amend and publish relevant guidelines. This is to ensure that our guidelines are consistent with the national arrangements for regulated SAPS, before the rule change takes effect.

We have completed this review and propose to amend and publish six documents. We have attached these documents below, with draft amendments marked up. We have also attached an explanatory statement that outlines what regulated SAPS are, why the rule change has been made and the changes we propose to make to the six documents.

Have your say

We invite interested parties to make written submissions to us regarding this explanatory statement and accompanying documents by the close of business, 30 June 2022.

Consultation for amendments to guidelines for distributed energy resources

We are currently engaged in a similar process of reviewing, and where necessary amending documents to take into account the National Electricity Amendment (Access, pricing and incentive arrangements for distributed energy resources) Rule 2021.

We will notify interested parties when we open for consultation on this process.