CEC recently made a submission on IPART’s Review of the Regulatory Framework for Supply Connection Infrastructure in NSW. IPART in its Options Paper sought views on additional State regulation (including licensing) to be imposed on operators of dedicated connection assets (DCAs), which connect renewable projects to the broader transmission network. This was to deal with potential cybersecurity, safety and bushfire, and business continuity risks.
The CEC's submission highlighted that additional regulation risks materially increasing barriers to entry for DCA operators and outlined alternative ways to manage identified risks within current frameworks. Maintaining a competitive approach on DCA operations helps industry contain costs, improve project economics and hence increase investment in newbuild renewables.
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