About the Ministerial Council on Energy: The Ministerial Council on Energy is the national policy and governance body for the Australian Energy Market, responsible for delivering the economic and environmental benefits for Australia resulting from implementation of the Council of Australian Governments national energy policy framework.

Renewable Energy Integration

The Australian Energy Market Commission (AEMC) Work Programs

In August 2008, the MCE requested that the AEMC undertake a Review of Energy Market Frameworks in light of Climate Change Policies. The aim of the Review was to determine whether the energy market framework requires amendment to accommodate the proposed Carbon Pollution Reduction Scheme and expanded Renewable Energy Target.

The AEMC released its final report in October 2009.  The MCE Response to the report was released in December 2009.

The MCE subsequently submitted to the AEMC two Rule change requests:

  • Scale Efficient Network Extensions” relating to the introduction of a new framework for the efficient connection of clusters of new generation, such as remotely located renewable energy generators
  • An “Inter-Regional Transmission Use of Service charge” relating to the introduction of a systematic inter-regional transmission charging mechanism to assist in the development of a more efficient national transmission network and enable the more efficient transfer of electricity in a future NEM with high penetration of renewable energy in individual regions.

Related MCE Documents

Bulletin

Associated Paper

173

AEMC Review of Energy Market Frameworks in light of Climate Change Policies: MCE Response

Review of Energy Market Frameworks in light of Climate Change Policies: MCE Response December 2009

MCE Renewable and Distributed Generation Working Group

In 2004 the MCE established the Renewable and Distributed Generation Working Group (RDGWG) to provide strategic advice on policy directions for removing impediments to, and promoting the commercial uptake of, renewable and distributed generation technologies and practices in the Australian energy market.

Initially RDGWG focused on increasing the clarity and consistency between different jurisdictional regimes. This included the development of a discussion paper and a draft code of practice for embedded generation (CoPEG) developed by the Utility Regulators Forum.

In 2006 the work of the RDGWG was integrated into the MCE’s broader work streams developing the economic and non-economic national distribution framework and the outcomes from RDGWG’s work were used to inform the establishment of these new regulatory frameworks.  For example, the draft CoPEG was used to directly inform the development of the new national framework.

More information on the relevant aspects of the new frameworks is available through the Demand Side Participation webpage.

Submissions and Contributions to the Discussion Paper and draft CoPEG were in part summarised in Charles River Associates’  Review of NEM Arrangements for Renewable and Distributed Generation - October 2006

Related Documents

CoPEG Papers

Submissions

Draft National Code of Practice For Embedded Generation, February 2006
Consultation Paper for a Draft National Code of Practice for Embedded Generation, February 2006
Draft National Code of Practice For Embedded Generation, February 2006
Charles River Associates, 'Codes of Practice for Embedded Generation', February 2004

The Draft National Code of Practice for Embedded Generation, March 2006

Discussion Paper

Submissions

Impediments to the Uptake of Renewable and Distributed Energy, Discussion Paper, February 2006

Impediments to the Uptake of Renewable and Distributed Energy, March 2006

MCE Wind Energy Policy Working Group

In 2004 the MCE established the Wind Energy Policy Working Group to provide advice on issues related to the entry of intermittent renewable energy generation into the NEM. The Wind Energy Technical Advisory Group, with industry sector representation was also formed to assist the policy group with the analysis of the technical matters.

Outcomes from this work were further developed by the Australian Energy Market Operator (then the National Electricity Market Management Company, NEMMCO) and resulted in the following Rule changes available on the AEMC website.

Related Documents

Discussion Paper

Submissions

Integrating Wind Farms into the National Electricity Market, Discussion Paper, March 2005

Integrating Wind Farms into the National Electricity Market, March 2005