Energy and electricity markets, along with the regulatory settings defining them and policy settings guiding them, were designed for a specific context and objectives. They need reform to facilitate energy transition in an effective, economically sound and socially acceptable way. The work will create insights of use to federal and state governments and their agencies, to industry stakeholders, as well as to civil society and the research and policy analysis community. It will help improve the environment for private sector investment in renewable energy and lead to better cost effectiveness of electricity supply.

The analysis in this project will focus on the National Electricity Market and the regulatory and policy settings for electricity production, distribution and use. It will build on Australia’s Finkel Review, and will help influence the longer-term reform agenda including on design of markets. This includes a NEM that provides effective investment incentives; policy and regulatory options to facilitate the transition away from high-carbon energy supply; respective roles and interplay of the Commonwealth and State level; market and regulatory settings to support cost-effective integration of decentralized energy resources, storage and demand-side management.