Consultation Notice - Endeavour Energy - Trial Waiver Application - 2023
| Type: | Regulatory Sandboxing Trial Waiver |
| Sector: | Electricity |
| Segment: | Distribution |
| Status: | Under consultation |
| Region: | New South Wales |
| Status: | Open |
| Date initiated: | 27 February 2023 |
| Service provider: | Endeavour Energy |
| Contact: | regulatorysandbox@aer.gov.au |
Overview
The Australian Energy Regulator (AER) has recently launched its new Trial Waiver function as part of the new Energy Innovation Toolkit. This function allows the AER to grant time-limited waivers from certain regulations which may be acting as barriers to new ideas and new innovative energy services. As part of its consideration of Trials, the AER is required to publicly consult on the proposals it receives.
The trial proponent, Endeavour Energy (Endeavour), lodged an application for a trial waiver with the AER through the Energy Innovation Toolkit on 27 February 2023. A copy of this application is included with this Consultation Notice as Attachment A. Additional workings justifying financial net benefits for each trial location are included in Attachment B.
The Trial proposed by Endeavour relates to a roll-out of smart meters to around 10,250 residential customers across Marsden Park, Penrith, Bawley Point, Aerotropolis and Westmead in New South Wales. Endeavour intends to install these meters to target network constraints in a cost-effective way utilising in-meter load control.
The Trial represents the continuation of a trial conducted during 2020-21 which involved transitioning approximately 2,850 customers in the Albion Park area to smart metering. This initial roll-out in 2020 was conducted as part of the AER’s Demand Management Incentive Scheme (DMIS) for 2019-2021. More information about this scheme can be found here.
Endeavour has indicated that this trial enabled it to decommission the load control system at the Albion Park zone substation and move to in-meter based load control. Endeavour has indicated that the Albion Park project also provides potential benefits associated with improving solar hosting capacity through utilising distributed solar resources to manage electric hot water load.
Presently metering installations are the responsibility of the relevant retailer and its appointed metering coordinator. Endeavour as a distribution network service provider (DNSP) would not ordinarily have a role in the upgrading of metering installations to smart meters, but provisions exist for DNSPs to upgrade metering installations (after giving notice) where the meter in question is faulty. This is done through what is called the metering fault notification. Endeavour intends, through this trial, to issue a metering fault notification in relation to meters which are not registering a fault.
Endeavour’s objective is to create a replicable “proof of concept” that addresses network constraints at the lowest overall cost while maximising customer benefits through accelerating the take-up of smart metering. The local distribution network operated by Endeavour will then utilise the collective load control functionality of these smart meters. Overall, Endeavour Energy considers the approach will help it to better manage the low voltage network to improve solar hosting, power quality and safety and reduce long-term investment.
Have your say
The AER is now consulting on the proposed trial waiver application and seeking stakeholder views on matters including whether the trial waiver application meets the eligibility requirements and the innovative trial principles.
We welcome submissions from interested parties on Endeavour Energy’s trial waiver application by close of business, 6 June 2023. Written submissions or requests to make a submission via alternative methods (e.g. through a meeting with AER staff) should be emailed to regulatorysandbox@aer.gov.au.