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AEMC final rule places batteries, pumped hydro at disadvantage to coal and gas

The Clean Energy Council says that the Australian Energy Market Commission's (AEMC) final determination on integrating energy storage systems into the National Electricity Market will result in consumers paying twice for network charges – first through higher electricity prices and again through standard network charges.

"While the AEMC has made several positive changes for storage, the renewable energy industry is disappointed that it has rejected the Australian Energy Market Operator's proposal to exempt pumped hydro and batteries from paying network charges," said Clean Energy Council Director of Energy Transformation, Christiaan Zuur.

"Batteries and pumped hydro will now be placed at a commercial disadvantage to coal and gas generators, who do not face network charges. This undermines the efforts of state and territory governments to decarbonise the power system.

"We are pleased to see that the AEMC has made a few changes to help address some of the concerns raised by industry, such as trying to exclude existing storage units from facing new charges and stating that all new negotiated charges must be consistent across existing and new storage providers. However, the devil will be in the application, and we will be observing how the network businesses apply these rules in practice."

The Clean Energy Council acknowledges that the AEMC has left the door open to another rule change to address these issues. The Clean Energy Council will continue to take the lead in addressing the major concerns raised by industry and work with the AEMC to try and find a better solution in 2022.


For more information or to arrange an interview, contact:

Jane Aubrey
Clean Energy Council Media Manager
[email protected]

+61 409 470 683