State and territory regimes for microgrids - in particular, stand-alone microgrids - differ widely, including in relation to their application of energy consumer protections.
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State and territory regulatory requirements may also apply (for example, licensing and exemption regimes, technical and safety regulations).
#Sell micro grids registration#
State and territory regulatory requirements may apply (for example, licensing and exemption regimes, technical and safety regulations), with the level of regulation varying depending on the state/territory.Įmbedded microgrid – led by parties other than the local distributor 2Ĭaptured by the National Energy Laws and Rules, predominantly through the authorisations and exemptions framework administered by the AER.Ĭaptured by AEMO registration requirements and procedures. systems supplying remote towns or properties that are not connected to the National Electricity Market (NEM).Īnd do not meet the definition of a regulated SAPS and therefore, in general, not captured by the National Energy Laws and Rules. In substance it is the interconnected electricity network that spans Australia’s east and south east (including to Tasmania) to which are connected – (a) generating systems and other facilities and (b) loads settled through the wholesale exchange.” This term does not cover off-grid systems that are not connected to other systems, e.g. When properly designed, a regional power grid that combines both large central plants and distributed microgrids can be built with: less total capital cost, less installed generation, higher capacity factor on all assets, and higher reliability.Interconnected national electricity system is defined in section 2 of the National Electricity Law (NEL). Using electric and thermal storage capabilities, a microgrid can provide local management of variable renewable generation, particularly on-site solar Support places of refuge in regional crises and first respondersĭiversified risk rather than concentrated risk Offer grid services including: energy, capacity, and ancillary services Integrate CHP, renewables, thermal and electric storage, and advanced system and building controls Improve the operation and stability of the regional electric gridĬritical infrastructure that increases reliability and resilienceĮnable highly-efficient CHP, reducing fuel use, line losses, and carbon footprint Provide efficient, low-cost, clean energy Microgrids are neither transmission nor pure generation and are really not contemplated by the planning system at all, even though they can provide reliability and economic benefits to the grid. “Congestion pricing” in RTO markets allocates the use of the system but does not provide an incentive to site generation to meet grid planning goals. The compensation systems for transmission and generation are fundamentally different, even though both can serve to improve the adequacy and reliability of supply. In addition, microgrids are generally not recognized as capacity resources.Īt the level of federally mandated transmission planning, matters are even more confused. Traditional baseline load calculations for demand resources do not capture the optionality of microgrids.
Microgrids employing multiple energy management technologies can simultaneously provide multiple services with multiple set points, but market rules generally do not permit them to do so. The regulations are designed for resources that are generators or that provide load curtailment, not resources that are both. However, adoption by Independent System Operators (ISOs) and RTOs is following slowly there is still much room for improvement. Orders 745, 755, and 784 open the doors within Regional Transmission Operator-managed control areas to compensation for demand resources and storage facilities that provide demand response and frequency regulation services. At the federal level, FERC has been making pioneering efforts to level the playing field for resources such as microgrids. They generally purchase power at retail rates, either from utilities or, where allowed, competitive load serving entities that are regulated by state public utility commissions (PUCs), and they sell power at wholesale rates subject to FERC jurisdiction. As the Federal Energy Regulatory Commission (FERC) has recognized, even though they are generally located behind the meter on the distribution system, microgrids provide services that substitute for and compete with the services of wholesale generation.
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