“Not fit for purpose.” It’s a phrase that has used often to describe the state of regulations in Australia’s main electricity grid, the rules that govern it, the market design, the connection process, and the business models of the incumbents.
It’s hardly surprising given the scale and speed of change of energy grid, the switch from a system based around a centralised fossil-fuelled power supply to a distributed system where the consumer is also the producer, and the rapid advances in storage, smart controls and inverter technologies.
“Not fit for purpose” is not a phrase you will find in the Australian Energy Regulator’s latest document – you will find one reference to “not fit” – but it is clearly the driving force behind its existence, and the recognition that regulations are going to have to keep up with the grid and the need to drive emissions down.
The Future of Network Regulation is looking at at structures, tools and incentives of the country’s regulatory framework for network services in light of the transition to renewables and the growing complexity and inter-dependence of the grid components – generation, storage, efficiency, retail, and delivery.
Some progress has been achieved with the simple addition of an environmental consideration in the AER’s deliberations – something that had been deliberately excluded at the last minute by the then Howard government (and will be excluded again if Labor is outed by the new coalition of far right, anti-net zero parties).
