Embedded generation is important for the development of efficient competitive energy markets. It is widely considered that the economies of scale in generation are diminishing and that localised or embedded generation may play a larger role in future. Importantly embedded generation can increase competition in the wholesale market. Also, because it can substitute for network use, it can put some competitive pressure on the networks.
The Tribunal’s intent is to ensure that, as far as possible, the regulatory arrangements do not discriminate against efficient embedded generation. It believes that due to the unique characteristics of embedded generation projects this can be best achieved through a process
of negotiation. This publication is intended to assist in the establishment of a suitable framework for such negotiations.
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