Peak Energy Body Releases Discussion Paper On Embedded Generation, National Electricity Grid And Cli

Peak energy body releases discussion paper on
embedded generation, national electricity grid and climate change issues

The Energy Networks Association (ENA) has released its Embedded Generation Policy Framework Discussion Paper alerting governments and regulators to the importance of tackling regulatory, technical and contractual issues in order to allow alternative power generators to make a significant contribution to the Federal Government's energy and climate change policy objectives.

ENA is Australia's peak representative body for gas distribution, electricity distribution and transmission network businesses. These energy networks are valued at over $50 billion and deliver electricity and gas to over 13 million homes and businesses across Australia.

"Current energy policy trends have an emphasis on cleaner energy to meet national environmental goals, including climate change abatement. This has increased the pressure for incorporating increased renewable energy sources into the electricity network. Such developments are reflected in recent Australian Government commitments to implement a Carbon Pollution Reduction Scheme (CPRS) and an expanded national Renewable Energy Target (RET) scheme," said Mr Andrew Blyth, Chief Executive, ENA.

"An outcome of more renewable energy sources in the National Electricity Market (NEM) is an expected rise in the development of embedded generation. That is generation comprising photovoltaic systems, wind power generators, and small gas power generators. These generators are connected within the distribution network, in proximity to end users, in contrast to larger power plants which are generally located at a distance from final energy consumers.

Mr Blyth drew attention to the timeliness of the public release of the ENA's discussion paper noting that:

"With the Australian Energy Market Commission at the initial stage of its Review of Energy Market in light of Climate Change Policies, the ENA paper is in a position to make a key contribution to the Review's deliberations over the next 12 months. ENA has furnished a copy of its policy framework paper to the AEMC as part of its response to the recently release AEMC Review Scoping Paper.

Key messages

* Establishment of national access rules which ensure that embedded
generator connections are not subsidised by electricity networks.

* Increased harmonisation of technical requirements, contractual arrangements, operating protocols and procedures.

* Consideration be given to the impact of the risks to network performance related to the increase use of embedded generation.

* ENA Discussion Paper can be downloaded at: www.ena.asn.au.

Andrew Blyth, Chief Executive can be contacted on 0408 977758

Source: Energy Networks Association