The Australian Energy Regulator (AER) has today released the final guidance note on export limits. This final guidance note is a non-binding document which provides clarity on the regulatory framework necessary to facilitate the effective implementation of export limits.
The primary objectives of the guidance note are to:
- provide clarity on policy objectives and design principles for distribution network service providers (DNSPs) when implementing and using flexible export limits as a tool for managing network congestion and increasing available hosting capacity for exports of solar PV based generation to the grid;
- provide clarity to DNSPs on the AER's expectations to support the development of expenditure to implement and use flexible export limits; and
- establish ‘guard rails’ for the development and use of flexible export limits to protect consumers and enable owners of consumer energy resources to maximise the value from their investments in a manner that delivers benefits to all consumers.
The development of a (non‑binding) guidance note on export limits was a key priority action out of the AER’s 2022‑2023 review of regulatory arrangements for flexible export limits, which was conducted as part of the Energy Security Board’s Consumer Energy Resources Implementation Plan.
On 17 November 2023, the AER published the draft export limit interim guidance note for consultation. We have received 20 submissions on the draft interim guidance note.
On 23 October 2024, the AER published the final export limit guidance note.
The final export limit guidance note marks a conclusion to the extensive consultation and analysis that has taken place since the initiation of AER’s review of the regulatory arrangements into flexible export limits. We will continue monitoring industry’s response to this guidance note and consider the next steps.