The Australian Energy Market Commission (AEMC) has identified opportunities to address gaps in the regulatory framework that could impede the delivery of offshore electricity infrastructure.
The findings are detailed in the final report of a high-level analysis of the national electricity rules (NER) to proactively understand the challenges and potential solutions to accommodating the industry in Australian waters.
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Offshore wind is already well-established in Europe and China, with the International Energy Agency forecasting its global capacity will reach 212 GW by 2030.
Australia’s windy coastline makes it an ideal candidate and the federal government has declared five offshore wind areas in waters off Victoria, New South Wales and Western Australia.
The AEMC examined how well the NER covers network connection and planning, power system security, and network economic regulation for offshore electricity infrastructure.
The final report suggests that while it is both feasible and preferential to accommodate these critical issues within the existing framework, there are gaps in the NER and little clarity on how jurisdiction specific schemes (i.e. renewable energy zones) might apply in Commonwealth waters. This results in barriers for industry to fund, construct and commission offshore energy projects.
AEMC chair Anna Collyer says the future-focused report highlights the need for regulatory changes to enable the industry.
“We want to support jurisdictions as they undertake the crucial policy development work to make Australia’s offshore wind ambitions a reality,” Collyer explains.
“This includes identifying opportunities to harmonise onshore and offshore regulatory arrangements to provide a consistent national framework that the market is familiar with.
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“We have also highlighted areas where departures from the national framework may be warranted.”
The report is intended as a preliminary step towards building a shared understanding of some of the unique challenges posed by offshore electricity infrastructure, with the AEMC continuing consultations with jurisdictions and industry about potential next steps.
