On 8 April 2024, the Australian Energy Market Commission (AEMC) received a rule change request from Tesla, Neoen and Iberdrola (the Proponents). The Proponents requested an amendment to the National Electricity Rules (NER) to exempt scheduled bi-directional units (grid scale batteries) from being liable entities under the Retailer Reliability Obligation (RRO).
Consultation paper
On 30 May 2024, the AEMC released a consultation paper on a rule change request. The purpose of the consultation paper is to request feedback on whether exempting batteries, and potentially pumped-hydro plants, from the RRO would contribute to a more secure power system without compromising reliability and adding costs to consumers.
The AER made a submission to the consultation paper on 5 July 2024.
Draft determination
On 22 August 2024, the AEMC published a draft determination on the Retailer reliability obligation exemption for scheduled bi-directional units.
The consultation addresses the competing incentives of batteries in the electricity market, which provide grid-supporting services while also being required to satisfy the retailer reliability obligation. The draft rules would exempt batteries and pumped hydro energy storage from the retailer reliability obligation at “exempt market connection points” defined in the rules.
The AER made a submission on 11 October 2024.