Consultation on Draft ISP Rules

Publication date: Wednesday, 20th November 2019.

The ESB published the Converting the Integrated System Plan (ISP) into Action - Consultation on Draft ISP Rules on 20 November 2019.

This consultation package includes a Consultation Paper and accompanying Draft Integrated System Plan Rules Changes (draft ISP Rules). The draft ISP Rules amend the National Electricity Rules to action the ISP. This consultation package has been informed by the consultation activity undertaken by the ESB over the past 12 months. The draft ISP Rules are intended to:

  • Convert the requirement for AEMO to prepare the National Transmission Network Development Plan (NTNDP) each year into a new regime for AEMO to prepare an ISP at least every two years including a draft stage allowing consultation.
  • Integrate the ISP with existing planning processes conducted under the NER by TNSPs, such as the production of Transmission Annual Planning Reports.
  • Change the RIT-T rules for ISP projects to streamline the process, recognising the work already done by the ISP and avoiding duplication of planning and modelling by the TNSPs.
  • Enable ISP projects that have passed the RIT-T to be able to commence a revised contingent project process.
  • Provide rules to deal with transitional issues, including recognition of previous ISPs as meeting the new rules and application of the new rules to RIT-Ts currently underway.

This consultation package provides stakeholders with the opportunity to comment on the proposed amendments set out in the Draft ISP Rules. Stakeholders are invited to provide comments on the proposed framework and draft ISP Rules by 17 January 2020.

The ESB is undertaking this Rule change process in accordance with section 90F of the National Electricity Law (NEL). The ESB may recommend rules to the Council if the following requirements are satisfied:

  • the Rules are in connection with energy security and reliability of the NEM or long-term planning for the NEM;
  • the Rules are consistent with the national electricity objective; and
  • there has been consultation on the Rules in accordance with any requirements determined by the Council.

Background

At the December 2018 Council meeting, the ISP: Action Plan was presented by the Chair of the Energy Security Board (ESB) and endorsed by Ministers. Ministers noted that a rigorous cost benefit analysis will be an essential part of the process to ensure costs to consumers are minimised, and agreed that the ESB do more work on further measures to operationalise the ISP.

On 17 May 2019 the ESB released a consultation paper that was focused on implementing recommendations 8, 9 and 10 of the ISP: Action Plan. This consultation paper was prepared by the ESB, AEMC, AEMO and AER to progress the work requested of the ESB by the Council to operationalise the ISP. These three recommendations are:

  • Recommendation 8: Rule changes should be prepared and lodged by AEMO with the AEMC to have the National Transmission Network Development Plan replaced by the ISP. Rule changes should also be lodged that require the ISP to be developed every 2 years with updates in between plans if there is a defined material event. AEMO should issue guidelines to stakeholders on how and when an update to the ISP would be done.
  • Recommendation 9: The ESB should work with AEMO to ensure that refinements to the inaugural ISP suggested in the ISP Action Plan are included in future ISPs.
  • Recommendation 10: The ESB should bring back to Council any rule changes, if required, to enable the ISP to identify the need and set of credible options to meet that need and replace the current Project Specification Consultation Report in the RIT-T.

 

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