Exemption from registering as a Generator in the NEM

This page outlines the requirements of applying for an exemption from registering as a Generator in the National Electricity Market (NEM).

Section 11(1)(a) of the National Electricity Law requires any person engaging in the activity of owning, controlling or operating a generating system in the National Elective Market (NEM) to register as a Generator. This requirement applies irrespective of whether that activity is carried out jointly with others, on the person’s own behalf, or on behalf of someone else.

An exemption from this requirement can be obtained under section 11(1)(b) if a person:

  • is the subject of a derogation that exempts that person from the requirement to be registered as a Generator;
  • is exempted by AEMO from the requirement to be registered as a Generator for that generating system, as provided for in clause 2.2.1(c) of the National Electricity Rules (NER); or
  • appoints an intermediary that is registered as the Generator for that generating system, in accordance with clause 2.9.3 of the NER.

Types of exemptions

Exemptions from the requirement to register as a Generator may be granted by AEMO based either on the system characteristics of the generating system; the registration of an intermediary as the Generator; or as a temporary notifiable exemption.

Exemptions based on generating system characteristics

Exemptions from the requirement to register as a Generator may be granted based either on the characteristics of the generating system by its nature, size, type and operation.

Intermediary exemptions

Clause 2.9.3 of the NER enables a person that would ordinarily be required to register as a Generator to apply for an exemption if an intermediary is to be registered instead.

For the purposes of the NER, the approved intermediary is treated as the registered participant (Generator). Intermediaries must comply with all requirements associated with the functions for which they are appointed.

If multiple organisations own, control, or operate different generating units within a generating system, each organisation must be registered separately for the activities it carries out, or seek an exemption. Only one organisation can apply to be the registered Generator for a generating system.

Revoking an intermediary appointment

An applicant may revoke the appointment of an intermediary by giving notice to AEMO in the form of a formal letter signed by a person of authority. The applicant must be the facility owner, operator, and/or controller.

AEMO will advise the Australian Energy Regulator (AER) that the notice has been given. At 4.30am, two business days after AEMO approves the notice of revocation, the intermediary will cease to be considered the applicant’s intermediary for the purposes of the NER. Note that AEMO has no ability to delay or reverse this once a notice has been given. 

The intermediary, being the registered participant in respect to the facility, will be removed from AEMO systems. This also means the facility will no longer be able to participate in the National Electricity Market until another person is registered as a participant for that facility. 

If the applicant revoking the appointment of an intermediary was previously granted an exemption from registration, that exemption ceases at the time of the intermediary’s revocation. If required, the applicant should apply for registration.

Temporary notifiable exemptions

This is a temporary exemption category. It may be available to persons who own, operate, or control a generating system for which they are required, and have applied, to register as a Generator, but wish to perform pre-commissioning work before their registration is complete. A notifiable exemption does not permit hold-point testing of a Generator.

Exemption documents

These are the documents needed for registration exemption. Further information is outlined in Generator exemption and classification guide.

Note: If an intermediary is being appointed, each exemption application should be submitted at the same time as the intermediary’s registration application.

Supporting documents

These documents and information need to be supplied either with your application form, or beforehand, as they support your application for registration.

Trustee deed

Where the Applicant is acting in a trustee capacity, they must complete and return the following Trustee Deed form. No changes can be made to the Trustee Deed other than the completion of details where highlighted.

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