Since it was established in 2009, the Australian Energy Market Operator’s (AEMO) functions as an independent market body have expanded significantly in response to the requirements of our rapidly changing energy landscape. AEMO has become increasingly central to planning, operational and security processes which look very differentfrom when it was created.
That’s why we support a review of AEMO’s governance arrangements to ensure they are fit for purpose for an energy system in rapid transition.
We’ve recommended changes in our response to the Commonwealth Department of Climate Change, Energy, the Environment and Water’s (DCCEEW) Review of AEMO Governance Discussion Paper. Our key recommendations include splitting AEMO into three functional bodies:
- AEMO – responsible for operation of the market;
- AEMO Services Ltd – responsible for the administration of extra-market mechanisms, and;
- The Australian Energy Planner – responsible for the planning and development of the energy system. This should be 100% government owned.
What’s next?
The review board is expected to report its recommendations at the next Energy and Climate Change Ministerial Council (ECMC) meeting in May 2026.
