The Australian Energy Market Commission (AEMC or Commission) has published a report that consolidates information on the designs of jurisdictional Renewable Energy Zones (REZs) frameworks. Reform Matters prepared this report for the AEMC.

Jurisdictional REZs will play an important role in planning and coordinating future transmission investment in the NEM

In recent years, most jurisdictions in the National Electricity Market (NEM) have introduced alternative transmission planning and investment frameworks to enable the development of REZs. REZs are, or will be, supported by jurisdictional REZ frameworks in New South Wales, Queensland, Tasmania, and Victoria. South Australia has at this stage not indicated that they would derogate from the national framework to implement REZs.

These jurisdictional REZ frameworks cover areas including network planning and investment, access rights, and connection processes and standards. As such, jurisdictional REZ frameworks provide a variety of alternative design options to the existing national transmission framework.

The Commission considers that REZs serve as an alternative approach to coordinate and manage the scale and speed of investment required on the pathway to net zero. If delivered effectively, REZs can provide locational signals, investment certainty, and a level of access protection that is absent from the current national arrangements.

We see value in consolidating information on the designs of jurisdictional REZ frameworks

Given the impact of REZs on investment in generation and transmission, we see value in consolidating information on the various designs of jurisdictional REZ frameworks to allow for holistic consideration and understanding of different jurisdictional REZ schemes.

The objective of this AEMC project was to build knowledge and share it with stakeholders, rather than undertaking an efficiency assessment and formulating any recommendations relating to opportunities for improvement of the jurisdictional REZ frameworks.

We have published a report from Reform Matters on the designs of jurisdictional REZ frameworks

We engaged Reform Matters to conduct a desktop review of the jurisdictional REZ frameworks. This desktop review collated, mapped, and presented information on REZ design aspects and processes, culminating in the preparation of a report that consolidated the information.

The AEMC has published the report prepared by Reform Matters. The Commission considers that this report provides value to stakeholders seeking to understand the various REZ designs.

The report represents a ‘snapshot’ of jurisdictional REZ frameworks. Information in the report is reflective of jurisdictional REZ frameworks as of 18 December 2024. Jurisdictional REZ frameworks are still being developed and are subject to change, therefore information in the report may become out of date as the jurisdictional REZ frameworks further develop.