Rule Change: Completed
Overview
On 19 December 2024, Australian Energy Market Commission (AEMC) published a final determination and final rules that supports the better integration of gas into the Integrated System Plan (ISP).
The final rules:
- enable the Australian Market Energy Operator (AEMO) to access, use and disclose gas information collected under the national gas rules to expand and deepen gas analysis included in the integrated system plan (ISP)
- require AEMO to develop gas development projections that will be included in the ISP and will improve transparency of assumptions for stakeholders
- establish confidentiality provisions to protect sensitive commercial information.
This expanded gas analysis will create a more robust and reliable ISP and optimal development path (ODP) supporting least cost investment in the electricity network for consumers.
The final rules do not contain amendments specific to community sentiment. We considered that no changes are required as the rules already allow AEMO to consider community sentiment in the ISP and for AEMO and transmission network service providers (TNSPs) to share information related to community sentiment via the joint planning process in the national electricity rules.
The final rules largely align with the draft rules with minor changes to incorporate stakeholder feedback and improve clarity.
We consolidated two rule change requests to enhance the ISP
The AEMC received three rule change requests to enhance the ISP on 3 June 2024. We have consolidated two of the rule changes:
- Better integration of gas into the ISP and
- Better integration of community sentiment into the ISP.
This means we published a single final determination that covers these two rule change requests.
A final determination has also been published in the third rule change – improving consideration of demand-side factors in the ISP. It can be accessed here.
Background
On 3 June 2024, the AEMC received three rule change requests from the Honourable Chris Bowen MP, Minister for Climate Change and Energy to amend the National Electricity Rules and the National Gas Rules to enhance the ISP.
The ISP is the primary planning document to guide investment in electricity infrastructure to meet energy demand in the National Electricity Market (NEM). It is prepared by AEMO and published every two years over a 20-year forecast horizon. Significant changes to the NEM have occurred since the ISP was first published in 2018, and a broader range of factors now influence the development of the system.
The rule changes were submitted following a review of the ISP carried out by the Energy and Climate Change Ministerial Council (ECMC) to consider whether its scope and function remain fit-for-purpose to support the energy transformation. The review concluded that there are opportunities to improve the ISP by enhancing AEMO’s consideration of factors critical to the energy transformation. You can view the ECMC’s response to the review here.
The rule change requests seek to enhance the ISP by expanding its consideration of gas market information and community sentiment. A third rule change request sought to improve consideration of demand-side factors.
The proposed amendments were intended to improve the robustness of the ISP’s forecasts in the context of a rapidly evolving energy system and aim to ensure that reliable and secure energy is available through a least-cost transition for consumers.