Renewable Gas Blending in Victoria - Gas Heating Values

AEMO received a request from the Victorian Minister to implement zonal heating values in Victoria for tariff V consumers.

The implementation of zonal heating values is part of a broader policy initiative that aims to integrate Hydrogen gas facilities as Victoria transitions to a renewable, sustainable energy system.

In relation to tariff V consumers, AEMO currently determines a single heating value for the state for each gas day. It is proposed that the methodology for determining gas heating values is amended such that a single heating value is prepared for each zone in the state for each gas day.

The implementation of the zonal heating value change is planned to coincide with not only the commissioning of the HyP Murray Valley project but also the broader hydrogen and renewable gas blending programs of work, including the Distribution Connected Facilities (DCF). The current target implementation timeline is described in AEMO’s letter to Department of Environment, Land, Water and Planning (DELWP).

AEMO intends to undertake a joint formal consultation with the Essential Services Commission (ESC) to amend the Gas Distribution System Code and relevant AEMO market procedures. The consultation approach will seek to inform and coordinate necessary changes across industry as well as progress the most cost-effective solution and, where possible, leverage existing processes, procedures and IT systems.

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