Electricity supply the world over is very much to do with rules. In Australia these rules are set by the Australian Energy Market Commission (AEMC)
Naturally enough the current rules support a model in which powerstations are huge, far away (in Gippsland) and a huge, high voltage transmission network brings us our power through the pylons that we have come to associate with power. The transmission network is expensive to build and typically 10% of power sent to us from Gippsland is lost as heat in the wires (this figure reaches 20% in remote areas)
The tragedy of these rules is that local generation, whether it is on your roof or in the solar farm down the road still has to finance transmission even though it does none.
The local wires and poles are a different matter. They are called the distribution network and around here are owned and run by Powercor. Signing a Memorandum of Understanding with them is the first phase of the current State-funded project. In other words this project is deeply and intimately about working with the local Distribution Network Service Provider – DNSP. I introduce the acronym because it crops up in the descriptions of the rule change proposal.
To stick with acronyms the essence of the proposal is the LGNC – the Local Generation Network Credit. These are certificates that the DNSP would award to generators, of any scale, that turns the savings described above into money for the generator.
It is important to note that does not immediately lower your bill (unless you have PV) but will drive bills down in the medium and long term.