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 six 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.
Energy Security Board (ESB) work plan
We will prioritise recommendations made by Energy Ministers in relation to the Energy Security Board's final advice on the Post 2025 Market Design (P2025).
Essential system services
Finding new ways to procure enough essential services to keep the power system stable and secure remains a critical priority for the sector. The Commission has been progressing a substantial work program that complements and is interdependent with the ESB's P2025 Essential system services and scheduling and ahead mechanisms reform pathway.
Enabling and 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. Our substantial work program in this area complements and is interdependent with the ESB's P2025 Distributed Energy Resources Implementation Plan. Effectively integrating these distributed resources into the national electricity market and properly valuing flexibility from customer demand in a market that has always been dominated by supply is essential to getting us to the grid of the future.
Transmission planning and investment framework
New transmission investment is critical to the transitioning energy sector. We need to build transmission in areas where we have not required large amounts of transmission capacity previously, driven by new generation. We need up-to-date and fit-for-purpose frameworks that will deliver timely investment.
Removing the regulatory burden
We will take opportunities to remove unnecessary regulatory burden from the rules wherever possible. This means progressing rule changes to remove regulatory burden on industry, streamline the rules (including improving the online functionality of all market rules) and make the sector simpler for consumers.
Ensuring that the benefits of reform are realised by consumers is at the core of what we do. We continue to prioritise any rule changes that ensure benefits and protections are afforded to the most vulnerable consumers.