EXPLORE KNOWLEDGE BASE
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CERI Knowledge Base
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About the CERI knowledge base
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Introduction to Australia’s electricity markets
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Australian consumer insights
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CER technical and interoperability standards
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Connecting a customer to an electricity network
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Connecting a generator to a distribution network
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Utility interconnection (CSIP-AUS)
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Dynamic network export and generation control schemes
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Network load control schemes
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Network tariffs and network support services
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Participating in the National Electricity Market
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Participating in a frequency control market
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Participating in the RERT
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Participating in the Wholesale Electricity Market (Western Australia)
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Participating in the I-NTEM (NT)
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Cyber security and data privacy arrangements
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Consumer protection frameworks
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Embedded Networks
Last Updated on 24 July 2026
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An embedded network is a private electricity network within a larger site. It connects to the local distribution network through a parent connection point and supplies multiple customers behind that connection. Embedded networks are common in multitenancy premises such as shopping centres, housing development and industrial estates. In the NEM and the Northern Territory, they are principally governed by Chapter 2 and 7 of the NER. Key roles include:
- Embedded Network Operator: The ENO owns and operates the embedded network, manages electricity supply within the site, and must hold AER network and retail exemptions.
- Embedded Network Manager: The ENM is the AEMO-accredited role that enables customers in embedded networks to access on-market retail options by managing NMIs and market data.
Key points
- Embedded networks are common in multi-tenancy sites such as shopping centres, apartment complexes and industrial estates.
- The Embedded Network Operator owns and operates the embedded network and may need AER network and retail exemptions.
- The Embedded Network Manager enables customers in the embedded network to access on-market retail offers by managing NMIs and market data.
- Embedded networks usually require DNSP engagement and may involve negotiated connection arrangements.
- CER assets such as PV, BESS and flexible loads can operate behind a shared network connection point.
- Recent NER changes allow some CER/DER projects to use a Scheduled Participant model as a simpler alternative to an embedded network.
How can embedded networks support PV and BESS systems?
An embedded network can enable AC-coupled PV & BESS systems (that must each have a separate market meter, if over 5 MW) to have a common network connection point to improve the utilisation, and reduce the cost of network connection infrastructure.
How can CER participate within an embedded network?
An embedded network can have any combination of market customers and electricity retail customers. This flexibility allows CER (e.g. a medium-scale BESS) behind a network connection point to participate directly in a wholesale electricity market via a separate market connection point. Such CER can offset the load of other customers for network tariff management purposes while making use of existing electricity supply infrastructure.
What regulatory approvals and registrations are required?
An embedded network requires an exemption under the AERs Network Exemption Guideline, and the ENM must be registered with AEMO. The AERs Retail Exempt Selling Guideline sets out the rights and obligations of an electricity retail customer within an embedded network. Due to their size, an embedded network will typically have a negotiated connection with the local DNSP.
What DNSP requirements apply to embedded networks?
In addition to AER and AEMO obligations, the local DNSP must be notified or engaged prior to establishing an embedded network. This includes registering the parent connection as an embedded network with the DNSP and may involve providing detailed technical information such as the network configuration, protection schemes, load profiles, and metering setup. DNSPs may impose additional conditions relating to access, commissioning, and remote read capability, especially where generation is embedded or significant site exports are proposed.
Recent changes to the NER (2025) allow CER/DER project developers to create a SSP behind a network connection point as a simpler alternative to creating an embedded network. This is further described in the Participating in the National Electricity Market section of this knowledge base.