In July 2023, the Australian Energy Market Commission (AEMC) commenced work on the suitability of the national electricity market (NEM) in a renewable-dominated future. We are doing this work in our role as expert energy adviser to governments.  

As part of this work, we have provided a submission to the Australian Government’s NEM wholesale market settings review. This review is being led by an independent expert panel supported by the Department of Climate Change, Energy, the Environment and Water.  

Our submission to the review’s initial consultation paper outlines the work we have been doing over the past 18 months to understand the challenges in the NEM that need to be solved, the elements of the current design that we should retain and leverage, and the areas where we see new focus and solutions are required.

The submission also includes the working paper we provided to governments in March 2024 which developed a robust decision-making framework to help design support mechanisms for the NEM.  

Our future of the wholesale market design project is part of our priority to progress work relating to longer-term market design to ensure our frameworks provide the appropriate reliability settings, efficient provision of system services and investment signals for the net-zero future.