Our power system is moving from a small number of large generators, concentrated in regions with access to coal, to a large number of small generators that are far more geographically dispersed and in places where the sun shines and the wind blows. Over the next 10 years, the amount of proposed new generation wanting to connect is roughly equal to the current size of the national electricity market (NEM).

The work we are doing in this area is focused on making sure there is adequate investment to build a bridge between new and old energy in the system. 

The AEMC is working with the Energy Security Board, Australian Energy Market Operator (AEMO) and the Australian Energy Regulator (AER) to develop a framework to underpin an orderly power system transition under a range of future scenarios. AEMO’s Integrated System Plan provides a useful starting point for thinking about what the grid may look like in the future and prioritising new transmission infrastructure that might be needed between now and then to support new generators.

Our Coordination of generation and transmission Investment (COGATI) implementation – access and charging review is considering the process by which generators access or connect to the transmission network, how much it costs and who pays for it. This reform is designed to lower the costs and risks of getting new generation and battery storage into the grid. It would change the market to make sure that new generation and storage are connecting to the power system in the right place and at the right time to meet future needs. This project is all about avoiding unnecessary costs being imposed on consumers through poor planning.

More information about what the AEMC has done to support efficient and coordinated investment in generation and transmission infrastructure.

AEMC’s system security and reliability action plan

This is part of the AEMC’s broader system security and reliability action plan. We are developing market frameworks which allow continued take-up of new generating technologies while keeping the lights on at the least cost to consumers.