Distributed Energy Resources integration draft determination

PIAC responded to the Australian Energy Market Commission’s rule change concerning the integration of Distributed Energy Resources (DER).

We consider DER integration should begin with accurately pricing the costs of consumption on the distribution network through cost-reflective network pricing. Cost-reflective pricing of energy from the grid rewards people for making investments and behavioural decisions that increase self-consumption of the energy they generate, reducing the need for the grid to handle export. 

We support changing the rules to acknowledge export services form part of distribution services but have concerns around expanding schemes to incentivise export service performance. PIAC considers any incentive scheme costs should be recovered on a beneficiary-pays basis, with particular concern not to charge non-solar customers for export reliability they do not benefit from.

We comment on various other aspects of the rule change.