Market Review: Completed
Overview
The Australian Energy Market Commission (AEMC) has published a Terms of Reference (TOR) and conclusions report for the Review of the REZ planning framework in the NER. It sets out our approach, the requirements in the rules to carry out a review of the renewable energy zone (REZ) planning framework in the national electricity rules (NER), and our conclusions.
We were required to conduct a review of the national REZ planning framework set out in rules 5.14, 5.22 and 5.24 of the NER by 1 July 2025. However, the REZ planning framework in the NER has not been used to date. Most jurisdictions have implemented, or are in the process of implementing, their own, state-based REZ planning frameworks.
We consider that we cannot meaningfully test the effectiveness of the REZ planning framework at this stage as it has not been triggered, and there is limited information on which to base a review. The TOR and conclusions report delivers on our obligation and is the first and final deliverable for this review.
Background
The REZ planning framework in the NER was developed to improve the coordination of network planning for REZs. It does this by placing obligations on jurisdictional planning bodies to prepare REZ design reports if AEMO triggers the requirement in its ISP. It was introduced in 2021 to improve the coordination of network planning for REZs.