A pathway to reliable electricity for Australia
The Energy Security Board has delivered its final advice to Energy Ministers on Post-2025 Energy Market Design.
This advice follows extensive consultation with industry across four workstreams:
- Strengthening signals to encourage investment in dispatchable generation capacity and the retention of existing thermal generation for as long as it is needed;
- Delivering essential system services;
- Improving transmission and access arrangements to ensure consumers are the beneficiaries; and
- Better enabling demand side participation and integration of distributed energy resources.
It includes a recommendation that governments further develop a capacity mechanism to provide the right market signals to drive investment in dispatchable generation. This will be crucial to ensuring that we can absorb renewables into the grid without threatening reliability and affordability.
The pace and scale of changes underway in our electricity system is unprecedented, and it is essential that the National Electricity Market (NEM) remains fit-for-purpose into the future in order to protect consumers from high prices and reliability risks as technologies in the energy sector change.
This important work must deliver affordable, reliable power, supported by the right mix of technologies and value-for-money transmission, where it is needed. It must also address the significant changes occurring in our market.
The Post-2025 Market Design is the most critical energy reform governments have been tasked to deliver by National Cabinet.
Minister for Energy and Emissions Reduction Angus Taylor, along with state and territory counterparts, will consider the recommendations and present a package for consideration by National Cabinet later this year.
Minister Taylor's office: 02 6277 7120