NEM Review: Networks push for fewer fences and more access to batteries and generation

Distribution network companies are pushing hard for changes to National Electricity Market rules that will allow them to “evolve their capability” beyond poles and wires.

That could include owning and operating medium and big batteries and hosting large-scale wind and solar.

DNSPs from New South Wales, Queensland and South Australia have called for the loosening of regulatory barriers to unleash the full potential of their networks and deliver what they say would be more efficient outcomes.

They are particularly keen to be able to install, own and operate what are nominally called “community batteries”.

These are medium-scale “shared” energy storage systems rolled out on distribution grids to help soak up excess rooftop solar in the middle of the day and shift it into the evening peak.

Under normal ring-fencing rules, to avoid distortion in competitive markets, DNSPs are not allowed to do this.

But Ausgrid says these rules stand in the way of a much broader battery rollout that promises to deliver multilevel network and customer benefits.

The network companies say their role in the energy market has been undervalued and overlooked in the transition so far.

In their own submission to the Review, Queensland companies Energex and Ergon called for the development of a Distribution Market, and establishment of Distribution System Operators (DSOs).

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