NEM Reform Implementation Roadmap

AEMO’s NEM Reform Implementation roadmap (the Roadmap) provides AEMO and stakeholders with a holistic view of the reforms impacting Australia’s east coast Electricity and Gas markets. The purpose of the Roadmap is to de-risk delivery, inform implementation timing and minimise implementation cost. The Roadmap will be revised periodically to reflect changes in scope or timelines as policy or designs are being finalised or as new rule determinations are made.

Supporting documentation

Key considerations

In collaboration on version 3 of the NEM Reform Implementation Roadmap, AEMO and Reform Delivery Committee (RDC) members worked through the change management process in accordance with the set NEM Reform Program governance arrangements.

As part of this process RDC members:

• Recognised the continued potential for congestion in 2025 resulting from the implementation of multiple reforms;
• Noted the uncertainty around the progress, scope, timing and cost of some initiatives currently earmarked for the 2025 timeframe including Unlocking consumer energy resources (CER) benefits through flexible trading, Integrating price responsive resources into the NEM, Improving security frameworks for the energy transition, Congestion Relief Market and Priority Access and Operating Reserve Market;
• Noted a recent trend across reform initiatives towards a more simplified scope and therefore implementation requirement including for example, Improving security frameworks for the energy transition, Unlocking CER benefits through flexible trading and Operating Reserve Market;
• Noted the inclusion of implementation assumptions for AEMO’s foundational and strategic initiatives, namely Identity and Access Management, Industry Data Exchange and Portal Consolidation are subject to a final business case, as well as ongoing assessment to account for future reform initiatives. RDC members sought clarity on whether all the foundational and strategic initiatives proposed to be implemented in 2025 are likely to be required to support the NEM reforms proposed to commence in 2025, and if not, note AEMO could consider adjusting the implementation plan of such initiatives, for example by delaying their commencement.
• Agreed the need to navigate this potential reform congestion, along with other challenges as they arise across the full scope of the NEM Reform Program, in coordination with the relevant market bodies including the completion of key tasks:               - A holistic review of the DER initiatives (national and jurisdictional specific) to be       
         completed to assess the opportunities, impacts or challenges for AEMO and       
         industry participants and how they may be accounted for in the Roadmap / Program
         no later than Q1 2024 (subject to the ESB’s publication of its CER and Data End of
         Program Report);
        - A prioritisation and sequencing assessment of those initiatives contributing to
         congestion within the NEM Reform Program be completed no later than Q1 2024.
• Agreed the Roadmap reflects the NEM Reform Program's implementation requirements at this time based on publicly available information, recognising the above uncertainties and challenges. 

Previous versions

Stay informed

The roadmap is maintained in collaboration with the Reform Delivery Committee. Stakeholders can access meeting materials by visiting the dedicated webpage.

For more information, please contact NEMReform@aemo.com.au