Market Review: Open
On 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.
Approach of the Review
The Review will follow a two-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 the issues identified in Stage 1.
The Review will develop its advice collaboratively with market and jurisdictional bodies and will consider input from a broad range of stakeholders.
Consultation process and next steps
Submissions to the consultation paper closed 30 September 2021.
The consultation process for the Review includes consultation for the Material change in network infrastructure project costs rule change request, as both involve managing uncertainty in transmission project planning and investment. More information on the rule change request can be found on the project page at: https://www.aemc.gov.au/rule-changes/material-change-network-infrastructure-project-costs
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.