The Australian Government has released the final report following a review of the National Electricity Market (NEM) wholesale market settings by an independent expert panel.
The review, announced in November 2024, investigated ways to promote investment in firmed, renewable energy. A key priority was addressing price volatility and making bills more stable.
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The final report includes a package of reforms that work towards modernising the NEM to support a smooth transition to renewable energy as coal exits the system.
It provides 12 recommendations for improving the market in the short term, medium term, and long term. The report delivers a pathway to providing certainty, clarity and reliability that allows the market to work as intended.
The Australian Energy Council welcomed the release of the Expert Panel’s Final Report, saying, “The report is the culmination of wide and open consultation on the best approach and the types of reforms needed to take the energy transition beyond 2030.
“We commend the Expert Panel on its approach which has provided the best opportunity to develop coherent and enduring energy policy. In particular, the Expert Panel drew heavily on industry expertise throughout the process, and has recommended this continue in the implementation phase, which will be led by a Department of Climate Change, Energy, the Environment and Water (DCCEEW) Secretariat.
“Strong and enduring energy market policy, focused on delivering the services the system needs, that can support the needs of households and businesses, is critical given the central role of energy supply to economic activity. It will also drive confidence and encourage investment and productivity gains.
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“The work of the review provides an opportunity to develop the appropriate market signals but requires a national approach to be fully realised.
“Realisation of the panel’s work will also require substantial detailed work in 2026 and our organisations support the intention to continue close industry engagement to help shape this process. Ongoing engagement with industry is essential in ensuring the Panel’s recommendations are implemented in an informed manner that minimises unintended consequences.”
