On 21 July 2026, we published a consultation paper to commence consultation on the 2027 customer export curtailment value (CECV) methodology, which will review the original 2022 methodology.
The consultation paper seeks stakeholder views on potential updates to the CECV methodology. The current methodology sets out our approach to quantifying selected distributed energy resources (DER) value streams, including the impact of incremental DER exports on wholesale market production costs, accounting for transmission and distribution losses, and approximating the impact of Frequency Control Ancillary Services requirements. As part of the review, we are seeking views on whether CECVs could, or should, be updated to measure the value of demand and incorporate additional value streams.
The feedback we receive in response to this consultation paper will inform our draft report, which we expect to release in early 2027.
View the consultation paper here
Background
On 12 August 2021, the Australian Energy Market Commission released its Access, pricing and incentive arrangements for distributed energy resources final determination. The determination amended the energy rules with the aim of integrating more DER, such as small-scale solar, batteries and electric vehicles, into the grid. The determination requires distribution businesses to plan for the provision of export services and strengthens customer protections and regulatory oversight by the AER.
Under the final rules, the AER consulted on and developed the CECV methodology, which is used to calculate the CECVs the AER must publish each year. CECVs represent the detriment to all customers from the curtailment of exports from DER, including consumer energy resources (CER) such as rooftop PV systems, due to network limitations. The AER published the methodology and initial values on 30 June 2022.
The AER is required to review and amend the CECV methodology every five years, or publish a notice stating that the methodology has not been amended. The first review must be completed by June 2027.