The Australian Energy Regulator (AER) has commenced consultation on the 2027 customer export curtailment value (CECV) methodology, which will review the original methodology published in 2022.
Electricity distribution networks are increasingly managing two-way energy flows, flexible demand and new distributed energy resources (DER) value streams. This review will consider enhancements to the current CECV methodology to ensure it reflects this changing environment.
CECVs estimate the cost to customers when exports from rooftop solar and other distributed energy resources are limited because of network constraints. Distribution network service providers (DNSPs) can use CECVs to help quantify the value of export curtailment that may be alleviated by proposed investments, such as increasing DER hosting capacity.
The energy rules require the AER to publish CECVs annually and to review the methodology at least every five years to determine whether any changes are needed. We have published a consultation paper seeking feedback from stakeholders on the role CECVs should play in supporting DER integration decisions. This includes whether the methodology can continue to capture the value of avoided export curtailment, while also being expanded to estimate the benefits of flexible demand and additional DER value streams.
The AER is seeking stakeholder views on where changes to the methodology could deliver the greatest benefit, which issues stakeholders consider most important, and how any priority changes could be developed and implemented. This includes feedback on:
- whether CECVs should capture flexible demand and additional value streams.
- how CECVs should be applied and set at an appropriate level of granularity, and when they should be updated.
Feedback will help inform our thinking on the future development of the CECV methodology, including which matters should be progressed in the draft report expected to be released in early 2027. As the paper is exploratory, submissions will help us identify priority issues for the next stage of the review, having regard to the purpose of CECVs, legal scope, practical value and workability.
Submissions on the consultation paper will inform the draft report, which is expected to be published for further consultation in early 2027.
View the consultation paper here
