The AER is signalling a new approach to testing and trialling new ideas in the energy market with the introduction of policy-led sandboxing.
In a paper published today, the AER has outlined how a shift from its current market-driven demand-led approach to a policy driven one could help to overcome barriers to access, deployment and orchestration of new energy resources, such as community batteries, electric vehicles and rooftop solar, that will benefit consumers in the long term.
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.
The paper outlines the key policy questions and the principles to guide the trials.
The AER has also proposed focus areas that it 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
The existing demand-led trials function will also remain open throughout the duration of the policy-led approach.
The AER can 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.
The Energy Innovation Toolkit is at the centre of the AER’s regulatory sandboxing function where businesses can apply for a trial.
The toolkit is delivered in conjunction with project partners at the Australian Energy Market Commission, Australian Energy Market Operator, the Australian Renewable Energy Agency (ARENA), and the Essential Services Commission.
Funding may be available through Government agencies and programs such as ARENA’s funding programs.
The AER also provides an Innovation Enquiry Service which is open and available to innovators to discuss ideas and receive free, fast frank feedback on how their proposal might be able to enter the market and the regulations that may apply.
