Overview
The Department of Climate Change, Energy, the Environment and Water is proposing to update the National Electricity Law (NEL) to better enable the Australian Energy Market Operator (AEMO) to support administration of the tenders for the Capacity Investment Scheme (CIS) on behalf of the Australian Government.
The CIS provides a national framework to encourage new investment in renewable capacity, such as wind and solar, as well as clean dispatchable capacity, such as battery storage. It aims to help build a more reliable, affordable and low-emissions energy system for all Australians.
AEMO Limited, together with its subsidiary AEMO Services Limited (ASL), is contracted by the Australian Government to administer the competitive CIS South Australia-Victoria Tender on behalf of the Australian Government. AEMO Limited and ASL are also the delivery partners for the 2024 national CIS tenders.
In providing tender delivery services to date, AEMO has identified some gaps in the NEL that would hinder AEMO from performing their function as the delivery partner.
To rectify these gaps and allow for the continued running of the CIS, amendments to the NEL and corresponding NER are required.
The consultation paper provides more details on our proposed approach to rectify this. You can provide your written feedback on this proposed amendment.
