Post 2025

Electricity Market Design

Delivering a stronger, lower emissions power system for Australians

The Energy Security Board, in collaboration with the market bodies, is transitioning the national electricity market into a modern energy system fit to meet consumers’ evolving wants and needs. The Post 2025 electricity market design addresses essential change in a world of expanding consumer choices, new technologies, and large-scale capital replacement as old thermal power stations leave the market

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The 2025 project

The future course of energy investment and operation is at a turning point. The shift to new technologies and renewables is happening at speed and the need for reform is urgent as we lay the foundations for Australia’s new energy future. More consumers and producers are taking up these opportunities. Just one example of consumer choices driving structural change is the rapid spread of rooftop solar, smart appliances and other distributed energy resources that are changing the face of the market. The shift to grid-scale renewables is equally important. Australia’s power system may well become the most decentralised in the world.

The ESB proposed a suite of reforms to meet the needs of this transition. Energy Ministers have endorsed these reforms and have tasked ESB with their delivery. The ESB is now establishing a program of work to deliver these reforms, in consultation with consumer and industry representatives. Details of each relevant process within the program of work will be made available on this website shortly.

The suite of reforms is designed to fix immediate problems; design now what needs to happen next; and set up pathways forward so everyone has clarity and confidence about what must be done.

With all the reforms in place, the national electricity market will:

  • allow consumers to benefit from rapidly changing technologies in our power system
  • unlock the value of flexible demand and distributed energy resources
  • work alongside government schemes which are delivering on their policy commitments including emissions reduction
  • provide clear signals for timely and efficient investment to deliver reliable, secure, and affordable electricity for consumers.

Final advice in pictures

The rapid shift to renewables has seen Australia outgrow the way it prices and delivers electricity. These infographics at a glance summarise the substantial changes needed to unlock the benefits of change for consumers. Grid congestion has to be managed so wind and solar is not wasted. Investment in a mix of firm, flexible and variable resources needs to be encouraged in a new-look market now based on different economic behaviour in a high renewables system with low-to-no-fuel costs.

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