Time to understand “Ring-fencing”

Time to understand “Ring-fencing”

AU Energy Compliance
On 3 November 2021, The Australian Energy Regulator (AER)  concluded and published a revision of the Ring-fencing Guideline. Parties are expected to be fully compliant with the updated Guideline (version 3) by 3 February 2022. The Ring-fencing Guideline was revised to establish a framework and controls for a competitive market for deploying community-scale batteries and Stand-Alone Power Systems (SAPS). By separating monopoly network services and avoiding cross-subsidisation of large Distributed Network Service Provider (DNSP), the AER seeks to make energy services more competitive and beneficial for customers. What is Ring-fencing? Ring-fencing describes the division of regulated services (eg. installation/maintenance of poles and wires) and contestable services (eg. installation of smart meters) provided by DNSPs. Thus, the Ring-fencing Guideline regulates to what extent the DNSPs can provide regulated services and when…
Read More
State Support for Renewable Energy in California

State Support for Renewable Energy in California

AU Energy Compliance
Last week the CEO of PG & E, Geisha Williams, California’s largest utility provider, explained PG & E’s move away from coal (http://money.cnn.com/2018/04/12/news/companies/pge-coal-renewable-energy/index.html). Williams argued that natural gas and renewables are more economical for California, as well as cleaner. PG & E aims to boost its renewable energy to 55% by 2031 -five percent above the state target. Renewable Energy in California, its a hot topic! In today’s piece, we look at state support for renewables in California and compare it with the support available from the federal government in Australia. This will be of interest to any business looking at moving into the renewable space in California. [caption id="attachment_4177" align="aligncenter" width="640"] Renewable Energy California[/caption] By Dr Drew Donnelly, Compliance Quarter. Renewable Energy Support in Australia In Australia, the primary support…
Read More

Two Billion Dollar Opportunities for Innovation in the Energy Market

AU Energy Compliance
Innovation in the Energy Market - If you believe the news, we are in the midst of an energy crisis. Ignoring the politicking, today we examine two areas of the energy market that are ripe for innovation. In our previous post, we spoke about the number of businesses now looking to become energy retailers. Much of this is driven by business models looking to innovate the energy market. [caption id="attachment_4033" align="aligncenter" width="640"] Photo by Marcus Wallis on Unsplash[/caption] By Connor James, Compliance Quarter. Demand Management that People Care About Countless providers offer an ‘app’ or device to help you manage your energy. Most of them fail. The promise is simple—give people more power over how and when they use, store, or export energy. In doing so, savings can be achieved,…
Read More

New energy zones identified in New South Wales

AU Energy Compliance
By Anne Wardell, Compliance Quarter.  The New South Wales Government (government) has lodged a submission with the Australian Energy Market Operator (AEMO) in relation to AEMO's Integrated System Plan (ISP). The ISP was recommended by the Independent Review into the Future Security of the NEM (Finkel Review). The first ISP is expected to be delivered in June 2018 and AEMO has indicated that it will, 'deliver a strategic infrastructure development plan, based on sound engineering and economics, which can facilitate an orderly energy system transition under a range of scenarios. This ISP will particularly consider: What makes a successful renewable energy zone (REZ) and, if REZs are identified, how to develop them. Transmission development options'. (Source: AEMO ISP page) The government submission was released in March 2018 and it is important…
Read More

The International Energy Agency Review: Are state and territory energy policies evolving in in an “unco-ordinated manner leading to fragmented markets and suboptimal outcomes”?

AU Energy Compliance, Uncategorized
A couple of weeks ago the International Energy Agency (IEA) released a lengthy report (250 pages) on their review of energy policy in Australia - The International Energy Agency Review (http://www.iea.org/publications/freepublications/publication/EnergyPoliciesofIEACountriesAustralia2018Review.pdf).   Photo by Jeremy Bishop on Unsplash By Dr Drew Donnelly, Compliance Quarter.  The scope of this review, set by the Commonwealth Government, was to analyse the lessons that Australia can learn from other countries’ experiences in transiting to a low-carbon energy market. The Commonwealth Government mandated two special focus areas: • the growing role of Variable Renewable Energy (VRE) in the Australian energy market; • the role that natural gas can play in the transition to a low-emissions environment. Today’s article is a deep dive into the recommendations contained in this report (the International Energy Agency Review) and our assessment of…
Read More
AEMC releases draft rule to support a competitive market for ‘behind the meter’ battery storage

AEMC releases draft rule to support a competitive market for ‘behind the meter’ battery storage

Uncategorized
By Anne Wardell, Compliance Quarter The Australian Energy Market Commission has released a draft rule to support a competitive market in ‘behind the meter’ batteries and other distributed energy resources by limiting network businesses’ ability to own and control these assets. This follows a rule change request from the COAG Energy Council and the Australian Energy Council. The purpose of the rule is to facilitate competition in the emerging contestable energy services market. The rule is designed to allow the consumer to choose how to use their energy resources rather than the distribution business. The draft rule: restricts distribution network service providers' ability to earn regulated returns on assets located behind the meter, on the consumer’s side of the connection point updates the framework setting out how the Australian Energy…
Read More