In December 2015, the Essential Services Commission (ESC) published a paper outlining the approach it was proposing to follow for its inquiry into the true value of distributed generation.
The ESC is focusing on:
- all forms of distributed generation, regardless of fuel source and including battery;
- distributed generation below 5 MW; and
- the total output of distributed generation; customer use and exported to the grid.
The paper states that the inquiry will aim to uncover the public benefit of distributed generation and if distributed generation is adequately rewarded for the public benefit it generates, namely:
- economic benefit – to the electricity market and network and if a methodology can be designed for feed in tariffs to reflect time and location;
- environmental benefits – reduced carbon emissions and if this is fully reflected in renewable energy target related payments; and
- any other attributable benefits.
Submissions were due to the ESC by 12 February 2016 and a final report is due at the end of February 2016.