The Australian Energy Market Commission (AEMC) is undertaking a ‘Distribution Market Model’ project to explore how the operation and regulation of electricity distribution networks may need to change in the future to accommodate an increased uptake of distributed energy resources such as rooftop solar systems, battery storage and electric vehicles. These ‘distributed energy resources’ present both opportunities and challenges, as distribution networks move away from facilitating one-way flows to more dynamic, two-way flows of electricity.

The AEMC project is not intended to be a prediction of or pathway for future regulatory reform, but rather an exploration of possible distribution market design options that may be available to harness the opportunities presented by distributed energy resources, while addressing any technical impacts as they arise.

In December 2016, the AEMC published an Approach Paper, setting out the scope and context for the project, and the Commission's proposed approach to assessing a range of issues. Last week, AGL made this submission to the Approach Paper.