On 13 February 2025 the Australian Energy Regulator (AER) published its “Policy-led Sandboxing Accelerating access, deployment and orchestration of distributed energy resources through the regulatory sandbox” paper – Innovative trials welcomed as AER introduces policy-led sandboxing approach | Australian Energy Regulator (AER).
Regulatory sandboxing has been around for some time but has had somewhat limited use as a demand driven tool (i.e. a tool that parties can apply to the AER to use).
In these recent changes, the AER is exploring the option to use regulatory sandboxing on a proactive basis, by taking a “policy led” approach to trialling regulatory innovation.
The policy focus is in the distributed and consumer energy resources areas of energy policy, however it is worth noting that the regulatory sandbox process itself is not limited to application in these areas and may be a useful tool for those currently challenged by a regulatory hurdle and looking for an innovative way to overcome the hurdle (whether developers, distribution or transmission providers or other market participants).
McCafferty Legal has experience working in the regulatory sandboxing framework, and can support you in exploring whether this is a tool that may be useful for you.
