The National Electricity Market (NEM) has been in place since 1998. It brought together electricity industries in Queensland, New South Wales, the Australian Capital Territory, Victoria, South Australia, and Tasmania to drive greater efficiencies and a better utilisation of resources. It has served the nation well. But much has changed in the way we generate, consume and share energy that has implications for the way our energy services are supplied.
Addressing these implications is the core of the post 2025 project.
Penetration of variable renewable energy resources is increasing
Source: ESB June 2020
|Families and businesses were considered as just ‘consumers’ of electricity. Except for large industrial loads, customer relationships with energy retailers or local network businesses was limited.||Consumers concerned about affordability, responding to new tech opportunities to take control of energy consumption and bills, driving rapid uptake of distributed energy resources like rooftop solar, smart appliances, and metering.|
|Relatively few, predominantly large thermal generating units||Increasing decentralisation of generators with more energy produced by variable renewable or small scale resources which have potential to drive down both emissions and generation costs.|
|A mostly established transmission network.||New transmission needed to connect the new generation as the mix changes along with fast response storage and other technologies to come.|
|Established distribution networks that were one directional with very few behind the meter, distributed energy resources in homes or businesses.||Rapid uptake of distributed energy resources and other behind-the-meter services by consumers of all types.|