Department of Climate Change, Energy, the Environment and Water

Correspondence Regarding The 'proposed National Electricity Law (nel) Amendment: Capacity Investment Scheme October 2024.

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This correspondence from April 2024 discusses administrative procedures for implementing the Capacity Investment Scheme (CIS) under the National Electricity Law. Department officials clarified that section 51 of the NEL allows a Minister of a participating jurisdiction to request AEMO provide information, reports, or services. The team determined that Minister Bowen would need to issue a section 51 letter to AEMO for the national CIS contract, following the precedent established for the Victoria-South Australia tender where a similar ministerial request letter was issued and attached to the contract. Officials noted section 51 provides flexibility compared to alternative mechanisms. The correspondence contains minimal substantive environmental or energy policy analysis—primarily addressing the mechanical legal requirements for formally engaging AEMO's involvement in the scheme's tender process.

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