Memorandum of Understanding between the Australian Renewable Energy Agency and the AEMC
The Australian Energy Market Commission and the Australian Renewable Energy Agency have signed a Memorandum of Understanding to formalise cooperation on the broad program of work currently underway to facilitate innovation in Australia’s energy markets.
The MOU sets out a framework for coordination and information sharing to underpin collaborative projects such as the Distributed Energy Integration Program which aims to maximise the value of customer investments in distributed resources such as solar PV and battery storage.
More broadly the AEMC is contributing to ARENA’s work to promote renewable energy technologies by providing input into proof of concept trials to help us understand potential changes to rules and regulations that will be needed to accommodate a future with more renewables and demand response. At the same time, ARENA is sharing its expert insights with us as renewable energy technologies evolve and new business models develop. Information gained through ARENA’s proof of concept trials helps the AEMC’s consideration of potential changes to the regulatory framework and market development advice.
ARENA’s recent demand response trials with AEMO have shown that short procurement lead times can make it challenging for demand response providers to participate in the market’s strategic reserve mechanism. These findings informed the Commission’s conclusions to reinstate the long-notice RERT and are also being considered as part of the AEMC’s assessment of a proposal to enhance the Reliability and Emergency Reserve Trader (RERT).
The Chief Executives of the AEMC and ARENA will meet at least every six months.