The energy sector is constantly changing – now more than ever. This rapid change is people-driven and market-driven as new technologies move us away from a system of large, thermal power stations that are centrally located towards smaller, largely renewable, generators that are geographically dispersed. Our job is to enable this structural change through good forward planning and efficient regulation while keeping power prices affordable for households, businesses and the Australian economy as a whole.

The AEMC makes rules, undertakes reviews and provides the nation’s Energy Minsters with advice on the design of regulatory and energy market arrangements that put consumers first.

Priority areas of reform

The AEMC is prioritising five key areas of policy reform so customers can access safe, secure reliable energy at the lowest possible costs as we transition to a low emissions power system.

 

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Generator access and transmission pricing

The geographical shift to more dispersed generation  requires a rethink of how we plan and develop markets so we get investment in the right kit, in the right place at the right time to deliver reliable supply to customers. 

 

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Power system security

Essential power system services that were previously a free by-product of traditional power generation – like voltage and frequency control and inertia – are  not necessarily provided by new  generation because it has different technical features. This means we must find new ways to procure enough essential services to keep the power system stable and secure. 

 

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Integrating distributed energy resources

Customers are playing an increasingly active role in the power system by  adopting small-scale solar and energy storage technologies. This means rethinking how to best use existing network infrastructure so more customers and the grid as a whole can get the most from these low-emissions technologies. 

 

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Digitalisation of energy supply

Digital technologies are becoming more central to the power system. These technologies make it easier to choose and control how, when and where power is delivered and used. We are focusing on the right market frameworks to help  customers reap the benefits of this technological change.

 

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Delivering reliable supply by aligning the system’s financial incentives with its physical needs  

More variable demand from customers and more variable supply from generators creates opportunities and also makes forecasting a challenge, which adds risk to operational and investment decisions. We are focused on maintaining the link between the physical needs of the system and the financial incentives facing market participants so the system is as efficient and effective as it can be. 


We are also changing the way gas pipelines are regulated to make it cheaper and easier to move gas around the market.