The Australian Energy Market Commission (AEMC) has taken the next critical step towards the development of a national hydrogen and renewable gases industry.

Today the AEMC released a draft report outlining what changes to the gas and energy retail rules are needed to include hydrogen and renewable gases into the Australian market.

The Commission’s draft recommendations provide an important development in setting up the national regulatory framework so low-level hydrogen blended gases and renewable gases can be safely supplied to existing distribution systems and appliances in homes and businesses. 

AEMC Chair Anna Collyer said reforms in the regulatory framework will lay the foundations for the development of a decarbonised gas sector in Australia.

“Hydrogen is one of a handful of new, low carbon, zero-emissions fuels that can be used for heating and cooking in homes. Fuel cells can also power trucks, trains and cars,” Ms Collyer said.

“In the future, the hydrogen sector may grow to include power generation and some industrial processes. Electrolysers that create hydrogen may also provide beneficial services to the electricity market such as contributing to demand response and essential system services.

“These reforms are considered a priority under the Australian Government’s National Hydrogen Strategy and we need to make sure they’re delivered in an efficient, safe, and secure way that’s also in the best interests of consumers.”

The Commission’s work not only offers certainty to market participants and investors but provides clarity around access to pipelines, as well as supporting well informed decision making by market participants and consumers. The Commission’s draft recommendations also aim to enable the safe supply of low-level blended gases and consumer protections including billing and pricing. 

Finally, the Commission’s draft recommendations allow for a framework where participants can continue to innovate within a competitive environment.

A stakeholder forum will be held by the Department of Industry, Science, Energy and Resources on 1 April 2022. AEMC staff will present an overview of this report at the forum. 

Submissions to the draft report are open until Thursday 19 May 2022. 

Jurisdictional officials and the Australian Energy Market Operator (AEMO) are undertaking related and concurrent work looking at the gas and energy retail laws and procedures.

The Commission’s review is being undertaken concurrently with consultation on a rule change request to include distribution connected facilities in the Victorian Declared Wholesale Gas Market (DWGM). A draft determination on this rule change request was also published today.

Visit the hydrogen review project page for more information and contact details.


Media: Jessica Rich, 0459 918 964,