ENERGYINSIGHTSAustralianEnergyMarketCommissionNonStatutoryEnergyInsightsOffshoreelectricityinfrastructureInquiriesAustralianEnergyMarketCommissionLevel15,60CastlereaghStreetSydneyNSW2000Eaemc@aemc.gov.auT(02)82967800Reference:CRP0162AbouttheAEMCTheAEMCreportstotheenergyministers.Wehavetwofunctions.Wemakeandamendthenationalelectricity,gasandenergyretailrulesandconductindependentreviewsfortheenergyministers.AcknowledgementofCountryTheAEMCacknowledgesandshowsrespectforthetraditionalcustodiansofthemanydifferentlandsacrossAustraliaonwhichweallliveandwork.WepayrespecttoallElderspastandpresentandthecontinuingconnectionofAboriginalandTorresStraitIslanderpeoplestoCountry.TheAEMCofficeislocatedonthelandtraditionallyownedbytheGadigalpeopleoftheEoranation.CopyrightThisworkiscopyright.TheCopyrightAct1968(Cth)permitsfairdealingforstudy,research,newsreporting,criticismandreview.Youmayreproduceselectedpassages,tablesordiagramsforthesepurposesprovidedyouacknowledgethesource.CitationTocitethisdocument,pleaseusethefollowing:AEMC,Offshoreelectricityinfrastructure-AninitialanalysisofgapsandbarriersintheNationalElectricityRules,Finalreport,17October2024AustralianEnergyMarketCommissionNonStatutoryEnergyInsightsOffshoreelectricityinfrastructureContents1Introduction52Summaryofregulatorygapsandbarriers83Offshoreelectricityinfrastructurecontext103.1Backgroundtooffshorewindenergygeneration103.2Overviewofcurrentregulationsandregulatoryframeworksrelevanttooffshoreelectricityinfrastructure134Keychallengesandopportunitiesforregulatingoffshoreelectricityinfrastructure155Networkplanningandconnectionprocess175.1OEIspecificconsiderations185.2HowexistingarrangementsmightapplytoOEI195.3Issue1:ClarifykeyNERdefinitionsandroles215.4Issue2:ClarifyplanningandcoordinationarrangementsforOEI245.5Issue3:Considersupportforanticipatoryinvestment265.6Issue4:AccessrightsmaybeneededtoincentiviseOffWdevelopments285.7Issue5:RevisetechnicalOEIconsiderationsrelatedtotheconnectionprocess296Powersystemsecurity326.1OEIspecificconsiderations326.2HowexistingarrangementsmightapplytoOEI346.3Issue6:Consideroptimisinggeneratorrequirements356.4Issue7:Revisesystem-levelsecuritysettingstobettersupportOEI367Networkeconomicregulation407.1OEIspecificconsiderations417.2HowexistingarrangementsmightapplytoOEI417.3Issue8:ClarifyregulatoryboundariesforOffWactivities437.4Issue9:ClarifytheregulatorysettingstoapplytoOEI448Additionalstakeholder-identifiedthemes468.1Regulatoryresponsibilitiesandcoordination(beyondtheNER)map468.2Stakeholderengagementrequirementsmap49Abbreviations54TablesTable3.1:Summaryofuniquecharacteristicsofoffshorewind&transmissioninAustralia12Table5.1:OEIspecificnetworkconnectionandplanningconsiderations18Table5.2:Transmissiondevelopmentregimessummary19Table5.3:TheappropriateNEMregionandregionalreferencenodeforOffWisunclear21Table5.4:TheJurisdictionalPlanningBody(andPrimaryTNSP)isunclearinoffshorewaters23Table5.5:AEMO’sroleinplanningOEIandconsideringOEIintheISPisunclear24Table5.6:VariousplannersandregimescouldbecoordinatedtooptimiseOEIplanning25Table5.7:Nationalframeworksmaynotdrivetimely,anticipatoryinvestmentinOEI26AustralianEnergyMarketCommissionNonStatutoryEnergyInsightsOffshoreelectricityinfrastructureTable5.8:StakeholdersseekclarityontheapplicableaccessregimeforOEIandhowmultipleregimesmayinteractacrossjurisdictionalbounda...
