Energy reform hub

Post 2025 National Electricity Market Design

The COAG Energy Council has requested that the Energy Security Board (ESB) consider whether any changes are required to the core National Electricity Market framework in order to facilitate the technological shift towards a lower emissions electricity system. It is intended such changes will deal with increasing concentrations of distributed energy resources at least cost and without impacting reliability of supply.

Timeline *

The COAG Energy Council has approved ESB's forward work plan, which lists indicative timeframes within which stages of their advice will be developed in the lead up to its implementation in 2025.

Completed:

December 2018 – ESB's forward work plan approved by the COAG Energy Council
22 March 2019 – COAG Energy Council officially tasked ESB to develop a market framework in place of or amending the existing market design to ensure a higher degree of network reliability

To be completed:

June 2019 – Stakeholder consultation regarding existing marked design performance and the services required to enable the delivery of a secure, reliable, lower emissions electricity system at the lowest customer cost
March–August 2019 – Assessment of international options for a more secure, reliable and lower emissions electricity system
September 2019 – Stakeholder consultation regarding the options identified by the ESB to deliver the services required to facilitate a secure, reliable, lower emissions electricity system at the lowest customer cost
December 2019 – Identification of two potential options (in addition to current market design) to deliver a secure, reliable, lower emissions electricity system at least cost.
Stakeholder consultation commences on these two options.
2020 – Develop detailed design and analysis of two potential options and provide recommendations regarding suggested amended or alternative market designs
2021 – Develop, consult and agree any changes to the National Electricity Law and/or Rules required to implement amended or alternative market design
1 July 2022 – Finalisation of changes to post-2025 Market Design
2023 – Systems development for post-2025 Market Design (as required)
2024 – Live, parallel testing of post-2025 Market Design (as required)
1 July 2025 – Post 2025 Market Design commences operation (as required)

* Indicative timeline only

Resources