The Energy Innovation Toolkit

At the centre of the AER’s regulatory sandboxing function is the Energy Innovation Toolkit where businesses can apply for a trial.  

The toolkit is delivered in conjunction with project partners at the Australian Energy Market Commission (AEMC), Australian Energy Market Operator, the Australian Renewable Energy Agency (ARENA), and the Essential Services Commission.    

The toolkit has three components:

An Innovation Enquiry Service providing innovators with guidance on how their new technologies or business models can be delivered under the current regulatory framework.
A trial waiver allowing the AER to grant a time-limited trial waiver for eligible trial projects, exempting an innovator from having to comply with specified laws and rules for a period of time to allow a trial to proceed. A trial waiver is subject to a number of conditions, including consumer protection measures, reporting requirements and other obligations that may be specific to the trial.
A trial rule change process allowing the AEMC to temporarily change existing rules or introduce a new rule to allow a trial to proceed. Trial rule change requests may be submitted via the sandboxing website and will be forwarded to the AEMC to be assessed.

What is regulatory sandboxing?

Regulatory sandboxing is a policy tool designed to help frameworks adapt to rapid change. 

It enables proof-of-concept trials to operate under relaxed regulatory settings, so that innovative business models and technologies can be tested in a real-world environment. 

The outcomes of these trials are then analysed and provided to policy makers as evidence to inform upcoming regulatory change. 

We support energy innovators engaging in regulatory sandboxing to trial new products and services that will deliver greater choice and cheaper energy options for consumers.

Policy-led sandboxing

Our approach to sandboxing trials is a policy-driven one, aimed overcoming barriers to access, deployment and orchestration of new energy resources, such as community batteries, electric vehicles and rooftop solar for long-term consumer benefit.  

A policy-led approach can proactively shape trials to address key challenges, potentially reducing friction between innovation and the regulatory framework by identifying more quickly where flexibility in the rules exists, or where they need to be changed.  

In 2025 we released a paper explaining our policy-led approach. It outlines the key policy questions and the principles to guide the trials, as well as the focus areas we would like to see explored in trials.  

These trial ‘buckets’ are:  

  • Network-led orchestration or coordination    

  • Network data visibility   

  • Flexible metering and EV charging    

  • Social retailing    

  • Tariff innovation    

  • Virtual Power Plant aggregation incentives    

Read our Policy-led sandboxing paper here

Register of current and proposed trial waivers

The AER may grant a time-limited trial waiver exempting an innovator from having to comply with specified laws and rules for a period of time. 

View current trial waiver certificates 

View trial waiver applications under consultation 

Guidelines and explanatory statement

On 25 January 2023 we released the Trial Projects Guidelines and explanatory statement, which set out our proposed approach to delivering trial waivers and assessing applications.  

Trial projects guidelines - Regulatory sandboxing

Access guidance on how the AER will assess trial waiver applications and carry out our other functions in relation to trial projects.
Guidelines
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