The Australian Energy Market Commission (AEMC) has released a new report exploring how Australia can centre consumers during the energy transition.
The inaugural report, A consumer-focused net zero energy system, serves as a strategic guide for the AEMC in prioritising its work program within the broader context of the energy transition.
The AEMC said that as the body responsible for making and amending rules for the National Energy Market, it aims to provide stakeholders with clarity on how the organisation is thinking about the energy transition.
The report identifies key challenges and opportunities the AEMC considers will influence the future of Australia’s energy landscape, including the need for a dramatic expansion of the energy workforce and significant infrastructure development.
It also considers the importance of working towards more equitable energy outcomes across all segments of society while supporting the transition to a low-emissions future.
AEMC Chair, Anna Collyer, emphasised the AEMC’s unique role in examining the complex energy transition landscape.
“The energy sector in Australia is experiencing unprecedented change, the success of which is critical for consumers and all sectors of the economy.
“This report aims to contribute to the ongoing dialogue by identifying areas that require our attention as we navigate towards a consumer-focused net zero energy system,” Ms Collyer said.
The report explores a vision for the future where Australia’s power system is low-cost, low-emissions, reliable, secure and safe. This vision aims to support national prosperity while giving consumers confidence in the face of climate change.
To achieve these important outcomes, the AEMC has identified eight critical challenges and opportunities that will require ongoing attention from policymakers, regulators, and stakeholders.
These challenges range from achieving equitable energy outcomes across households to maintaining system security and reliability through unprecedented change. The report emphasises the critical importance of building and maintaining social trust to facilitate the required changes.
It also highlights the need for coordinating energy policy with other areas of policy, attracting necessary resources, and planning for the transition of gas.
To address these challenges, the AEMC defined four key focus areas to guide its future work program:
- Understanding consumer behaviours and preferences
- Fostering rapid electrification of vehicles
- Considering the regulatory framework for gas
- Understanding the impact of a changing climate on the energy system
Ms Collyer emphasised the collaborative nature of the energy transition.
“This report reflects our commitment to supporting the transformation of Australia’s energy system as it decarbonises.
“We look forward to working with the broad range of stakeholders involved in Australia’s energy transition as we collectively work towards these goals.”
The AEMC said that the new report aligns with and complements key industry and government initiatives, including the Energy and Climate Change Ministers’ Electricity and Energy Sector Plan, AEMO’s Integrated System Plan, AER’s Game Changer Reforms and consumer protection work, as well as various jurisdictional energy roadmaps, and this alignment ensures a coordinated approach to addressing the complex challenges of the energy transition.
The full report is available on the AEMC website here.
