In today’s news the Australian Energy Regulator (AER) has published its final Guidelines to make the Integrated System Plan (ISP) actionable.
The new guidelines aim to provide certainty, transparency and accountability for the Australian Energy Market Operator (AEMO), transmission businesses, and stakeholders to promote efficient investment in electricity services for the long-term interests of Australian electricity consumers.
The guidelines will come into effect through the 2022 Integrated System Plan (ISP) and will provide clear requirements around the:
- economic analysis that AEMO and transmission businesses will apply in the Integrated System Plan (ISP) and to related projects
- consultation and forecasting processes that AEMO will apply when developing the Integrated System Plan (ISP).
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The guidelines were developed in close consultation with stakeholders and seek to provide the Australian Energy Market Operator (AEMO), in developing the Integrated System Plan (ISP), with flexibility in how it identifies the optimal pathway for the National Electricity Market. However the guidelines also provide Australian Energy Market Operator (AEMO) with requirements to:
- engage closely with industry stakeholders
- be transparent and explain how it applies its judgement
- undertake a robust market-wide cost benefit analysis.
The guidelines are part of the new framework that was implemented through changes to the National Electricity Rules.