The Energy Security Board (ESB) has today published draft Rules for consultation to action AEMO’s Integrated System Plan (ISP) for the National Electricity Market (NEM).
The draft Rules provide streamlined regulatory processes for key projects identified in the ISP. This approach will embed the need for comprehensive stakeholder engagement in the development of the ISP, reduce the risk of duplication in identifying the needs of the system, whilst ensuring a rigorous cost benefit analysis remains.
ESB Chair Kerry Schott said that the actionable ISP framework will allow significant investment decisions to be informed by a NEM-wide perspective, taking into account factors arising as a result of a rapidly changing and increasingly complex power system.
“The actionable ISP framework will create a more timely and effective regulatory process for delivering transmission.”
“There will be a clear path for the efficient development of the transmission system on a whole-of-NEM basis rather than the current approach which at times can be unnecessarily duplicative.”
“The new framework will also support efficient investment beyond transmission, as an actionable ISP provides increased clarity about the development of the NEM. This will include increased clarity on where and when the opportunities for new investment are likely to arise.”
The draft Rules have been prepared in response to the recommendations from the Integrated System Plan: Action Plan presented by the Chair of the ESB and endorsed by Minister’s at the COAG Energy Council in December 2018.
During 2019 the ESB Chair submitted expedited rule change requests that were approved by the AEMC that streamlined the regulatory processes on the time critical transmission projects identified in AEMO’s 2018 ISP. These projects have advanced substantially over the course of 2019. AEMO will release a draft of its second ISP in December 2019 following an extensive consultation process.
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