Market Review: Open
On the 19 August 2021, the AEMC published a consultation paper for the Transmission Planning and Investment Review.
The AEMC has self-initiated the Review to:
- identify issues with the existing regulatory frameworks in relation to the timely and efficient delivery of major transmission projects
- explore options for reform or improvements to the existing regulatory frameworks
- recommend possible changes to the National Electricity Rules (NER) and other regulatory instruments (if required) to support frameworks that are fit-for-purpose and promote the timely and efficient delivery of transmission services.
Updated approach to the Review
The approach to the review has been adjusted given the complexity and interrelatedness of issues being examined and raised in stakeholder submissions.
The Review will follow a three-stage process:
Stage 1: identify and test issues associated with the frameworks for planning, funding and delivering major transmission projects.
Stage 2: identify and develop solutions to address shorter-term issues identified in Stage 1.
Stage 3: identify and develop solutions to address longer-term issues identified in Stage 1.
Separate draft and final reports will be published for each of Stage 2 and 3. Further detail on the timing and focus of each of the Stage 2 and 3 reports will be made available and an overview of the adjusted approach to the review will be provided at the Directions Forum to be held on 13 December (see below).
The Review will continue to develop its advice collaboratively with market and jurisdictional bodies and will consider input from a broad range of stakeholders.
The Commission held a directions forum on 13 December 2021.
The Directions forum marked the completion of Stage 1 of the Review and the commencement of Stages 2 (developing initial solutions) and 3 (developing longer term solutions). Slides from the forum are available below
The Directions forum also provided an update of the Material change in network infrastructure project costs rule change. More information on the rule change request can be found on the project page.
The National Electricity Market (NEM) is experiencing a significant transition away from reliance on thermal generation towards demand being principally met by geographically dispersed renewable generation. Substantial investment in transmission infrastructure is required to underpin the transition to clean energy and bring power from new renewable generation and storage to consumers.
It is important that the regulatory framework can accommodate discrete investments of the size and scale required for the energy transition, and that it is sufficiently robust to effectively manage the uncertainty stemming from the scale and pace of Australia's energy transition.