Australia’s National Energy Market (NEM) is a complex system that facilitates the buying and selling of electricity across the country’s eastern states and territories plus South Australia.
The NEM connects generators, transmission network service providers, distribution network service providers, retailers, and end users.
While network connection processes vary from project to project, the process to connect an energy project to the NEM generally involves:
Project development including feasibility studies, obtaining necessary permits and approvals, and designing the electrical infrastructure
Preparing and submitting a connection application to the network service provider (NSP) and/or Australian Energy Market Operator (AEMO), providing information about the project’s technical specifications and connection requirements
AEMO evaluating the connection application regarding the potential impact of the project on the existing network
Once the connection assessment is successful, the proponent and the relevant NSP negotiate a connection agreement that outlines the technical and commercial terms for connecting the project to the NEM
Negotiating how to deliver any upgrades to the existing network infrastructure that are required to ensure the project operates reliably
Constructing the electrical infrastructure then testing it to ensure that it complies with technical and safety standards
Registering the network connection with AEMO and commissioning the project by integrating it NEM’s market systems and databases to enable its participation in electricity trading and settlement processes
Once connected, ongoing operation and maintenance activities are carried out to ensure the project’s reliable performance and compliance with regulatory requirements
We bring our clients technical-commercial advisory services to successfully manage network connection processes and provides ongoing network connection lead development and project management as partners of major energy projects.