Integrating Energy Storage Systems into the NEM: Retail Electricity Market Procedures consultation

On 2 December 2021, the Australian Energy Market Commission (AEMC) made a final determination to implement the National Electricity Amendment (Integrating energy storage systems into the National Electricity Market (NEM)) Rule 2021, referred to as the ‘IESS Rule’. The IESS Rule seeks to better integrate storage and hybrid systems, taking a significant step toward a technology agnostic two-way market model for the NEM and delivering extensive changes to registration and classification, dispatch arrangements, non-energy cost recovery, and participation of aggregated portfolios of small resources.

AEMO has concluded its consultation on the Retail Electricity Market Procedures for the IESS Rule change.  In addition to the IESS changes, the Final Determination also includes two Issue Change Forms (ICFs) raised through the Electricity Retail Consultative Forum (ERCF).

The Final Determination has introduced three new National Metering Identifier (NMI) Classification Codes and several amendments to existing NMI Classification Codes to identify integrated resource system connection points and differentiate between distribution and transmission generator connections. These changes will enable AEMO to appropriately allocate unaccounted for energy, market fees, and monitor the integrity of the market. A large number of terminology changes have also been applied to the Procedures as part of the rule change.

Two ICFs were also considered as part of the consultation. The final decision for ICF 070 will provide participants with greater locational information for NMIs in MSATS, improving industry efficiency, especially in regard to metering installation works. The substantive matter of ICF 059 to identify generation capability in MSATS will be consulted on separately. A minor change will be applied to the Customer Threshold Code to provide guidance to participants when searching for the relevant jurisdictional threshold. 

This consultation was consulted in accordance with the Rules consultation requirements detailed in clause 8.9 of the National Electricity Rules.

For queries, please contact: NEM.Retailprocedureconsultations@aemo.com.au.