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
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.
The post 2025 reforms
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.
Implementing the Post 2025 market design
Existing market design and its challenges
Putting consumers first
Reports and documents
Access reform project initiation document (November 2021)
Post 2025 National Cabinet Reform Committee decision on the redesign of the national electricity market
Summary of the final reform package and corresponding Energy Security Board recommendations (29 October 2021)
Media release: Anna Collyer takes up ESB post as reform work gets the green light (1 November 2021)
Media Release: ESB welcomes approval from National Cabinet (29 October 2021)
ESB Renewable energy zones final recommendations (June 2021)
ESB Post 2025 Market Design Final Advice to Energy Ministers Part A
ESB Post 2025 market design final advice to energy ministers Part B (released 26 August 2021)
ESB Post 2025 market design final advice to energy ministers Part C (released 26 August 2021)
Media release: ESB final advice to energy ministers (28 July 2021)
