New NEM Registration: Integrated Resource Provider
On 3 June 2024, a new registration category was introduced through the Integrating Energy Storage Systems rule change. This new category will make it easier for newer technologies, like batteries, to register to trade in the National Electricity Market.
The Integrating Energy Storage Systems (IESS) rule has introduced several changes to the National Electricity Rules
The National Electricity Rules (NER) are made under the National Electricity Law (NEL) and govern the operation of the National Electricity Market (NEM). The NER determine how companies can operate and participate in the competitive generation and retail sectors, and also govern the economic regulation of electricity transmission and distribution networks. Among other functions, they provide the regulatory framework and processes for market operations, power system security, network connections and access, pricing for network services in the NEM and national transmission planning. In Victoria, however, the national rules for network connections are modified, with many of the network service provider roles being assigned to the Australian Energy Market Operator (AEMO).
to facilitate the registration and NEM participation of modern storage technologies in the National Electricity Market
The National Electricity Market (NEM) spans Australia’s eastern and south-eastern coasts and comprises of five interconnected states that also act as price regions: Queensland, New South Wales (including the Australian Capital Territory), South Australia, Victoria, and Tasmania. Western Australia and the Northern Territory are not connected to the NEM, primarily due to the distance between networks. The NEM’s transmission network carries power from electricity generators to large industrial energy users and local electricity distributors across the five regions. These assets are owned and operated by state governments, or private businesses.
(NEM). On 3 June 2024, the Integrated Resource Provider market registration category was introduced. This category simplifies and streamlines the registration process for innovative business models such as small resource aggregators and battery energy storage systems.
Who needs to register?
To buy or sell electricity in the NEM, market participants are required to register with the Australian Energy Market Operator
The Australian Energy Market Operator (AEMO) manages electricity and gas systems and markets across Australia, helping to ensure Australians have access to affordable, secure and reliable energy. Ownership of AEMO was – and still is – shared between government and industry, with members representing federal and state governments, as well as generation and production, distribution, retail and resources businesses across Australia. AEMO has always operated on a user-pays cost-recovery basis, and it recovers all operating costs through fees paid by industry participants.
(AEMO), with several registration options available depending on the business model. Registration ensures that participants have all the capabilities in place to participate in the market and system, in accordance with the applicable NER or market procedure obligations.
Registration also grants access to the systems and processes required to trade in the NEM. Registered participants must abide by NER obligations, including compliance with performance standards, maintenance and restoration requirements and operating standards that ensure the stability and safety of the national energy grid.
While some exemptions from registration do exist, as a general rule, anyone wanting to trade in the NEM must be registered with AEMO.
What is an Integrated Resource Provider?
As discussed in our article about the recent changes to market ancillary services and Small Generation Aggregators, the IESS rule change approved the introduction of a new participant category for registration – the Integrated Resource Provider (IRP).
In the past, participants with assets with bi-directional flows were required to register as both a generating participant (such as a Generator
Any person who owns, controls or operates a generating system connected to a transmission or distribution network must register with the Australian Energy Market Operator (AEMO) as a generator, except where they meet the exemption criteria. Each of the generator’s registered generating units must be classified as market or non-market depending if the sent-out electricity is sold through the spot market and classified as scheduled, non-scheduled or semi-scheduled depending on how the generating unit participants in central dispatch.
) and a Customer – two different registration categories. The introduction of the IRP category offers a fit-for-purpose registration category that considers different capabilities.
This means that participants with the relevant assets are now able to participate as an IRP instead of needing to register in multiple categories, simplifying the registration and classification process and allowing participants to take on a range of roles that are currently separated across different registration categories.
Further, the Small Generation Aggregator category has been retired, with those participants transitioning to the IRP registration category, under the label of Small Resource Aggregator
A Small Resource Aggregator (SRA) is a person registered with the Australian Energy Market Operator (AEMO) to supply and consume electricity aggregated from one or more small production units, which are connected to a distribution or transmission network. A small production unit is owned, controlled and/or operated by a person who AEMO has exempted from the requirement to register as a Generator or an Integrated Resource Provider.
If you want to understand more about how this rule change or other upcoming updates might impact your project, contact us or ask your regulatory question through our portal.
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