The energy industry is undergoing significant transformation. As coal generation is retired, well located, high quality, utility scale solar and wind projects with good grid access should provide better returns.
Regulation and Resilient Assets
Storage technology is becoming better and cheaper, and batteries are expected to play a significant role providing system resilience through firming and by creating their own demand source.
We engage and advocate for outcomes that support returns required whilst delivering lower costs to customers.
There have been a number of important regulatory developments that affect our investment businesses during 2019.
2019 regulatory developments
AEMO
2020 Draft Integrated System Plan (ISP) – a roadmap for Australia’s power system that maximises market benefits
ESB
Converting ISP into action (proposed rule changes) – streamline regulatory processes, adds weight to scope, timing and benefits of ISP projects
AER
Rate of Return Instrument (RORI) – sets out approach to estimate rate of return, return on debt, return on equity and value of imputation credits
AEMC
Regulation framework for stand-alone power systems – allow customers to benefit from new technology that lowers costs of providing regulated services
AEMC
Coordination of Generation and Transmission Investment (COGATI) Access and Charging – better coordinate generation and transmission investment to improve the efficiency of dispatch and location of generators, provide certainty to support new investment and improve planning information
ESB
Post 2025 Market Design for the NEM – develop long-term, fit for purpose market framework to enable provision of full range of services to customers necessary to deliver a secure reliable and lower emissions electricity system at least cost
AEMO’s draft 2020 ISP provides a roadmap for Australia’s power system.
Victoria Power Networks submits proposals every five years to the Australian Energy Regulator (AER) on how it charges for electricity based on the expected costs and the needs of customers. Energised 2021–2026 is a statement of Victoria Power Networks’ approach to planning for the next five-year period.
Since June 2017, Victoria Power Networks’ has been seeking input from customers and stakeholders to inform the development of Energised 2021–2026. This has included customer engagement such as surveys, pop-ups and forums, meetings with local, state and national stakeholders and the establishment of an advisory panel. What they heard is that customers want:
– a resilient network
– an affordable network
– a flexible network that supports choice.
In 2019 Victoria Power Networks participated in a Victorian Electricity Emergency Committee (VEEC) Exercise. This was designed to test the preparedness and response arrangements in accordance with the recently revised Victorian Electricity Emergency Communications Protocol during a cyber incident impacting electricity businesses and government agencies in Victoria. The outcomes will inform:
– Suitability of the Victorian Electricity Emergency Communications Protocol (VEECP) for response to network incidents arising from breaches in cyber security;
– Explore the relationships between the VEECP, Single Industry Spokesperson Protocol (SISP) and other related emergency communications arrangements; and
– Validate the revised Electricity Emergency Management Liaison Officer (E-EMLO) arrangements for Victorian Electricity Emergencies under the given scenario.