Essential Services Commission Inquiry into the true value of distributed generation: Proposed Approach Paper

The Melbourne Energy Institutes submission to the Essential Services Commission Inquiry into the true value of distributed generation Proposed Approach Paper can be found below. The submission addresses four main areas raised for consultation in the proposed approach paper.

Approach

  • We agree that the true value of distributed generation should capture, `as accurately as possible, the total benets produced by [distributed generation] investment'.
  • We recommend a consistent approach to the inquiry, with public benet and value to consumers remaining central to both parts of the inquiry.Considering only the `value to the distribution (and transmission) businesses' with respect to network value is inconsistent and not likely to promote socially optimal levels of investment.
  • Limiting the inquiry to easily quantiable values will not capture the total public value of distributed generation, and ultimate not promote socially optimal levels of investment.
  • Establishing a stakeholder reference group that is broadly representative of the stake-holder groups identied by the Commission may enable more effective and extensive consultation.

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Dylan McConnell

Melbourne Energy Institute

Reports and working papers

Research Areas:
Geothermal; Geological resources

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