Planning the fastest and most efficient investment path for the transition of the energy system is a critical task which will dictate the affordability and reliability of energy for decades to come. The current Integrated System Plan (ISP) is not fit for purpose because it does not do what it says it should in the National Electricity Rules (NER). Which is to develop the most efficient ‘whole of system plan’.
That’s why we’re making recommendations for robust reform of the ISP in our response to the Australian Energy Market Commission’s (AEMC) Review of the ISP Framework Consultation Paper.
Our recommendations build on long-term work aimed at expanding the outputs of the ISP beyond expensive and increasingly problematic transmission projects. This will help ensure the ISP identifies a truly optimal development path (ODP) that costs people less, by recommending storage, improved efficiency and other demand flexibility measures to meet energy needs, while meeting emissions and reliability targets.
What’s next?
We will continue to advocate for reform of ISP through this review and other ISP processes. We have also submitted a rule change to the AEMC, Co-optimisation of all energy resources in the ISP, to be considered alongside this review. If our rule change is accepted, it would require the Australian Energy Market Operator (AEMO) to use all elements of the energy system to identify a genuine ODP.
