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.
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
- 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.
NEM Reform Implementation Roadmap - Version 2
NEM Reform Implementation Roadmap - Version 1
The first version of the NEM Reform Implementation Roadmap outlines a baseline plan for the implementation of reform in the energy market. In recognition of the significant challenges and risks associated with policy and regulatory uncertainty, the Roadmap commits to delivery of mandatory and no regrets initiatives in a timely way. It also sets a pathway and progressive commitment process for delivery of those initiatives with greater uncertainty in policy, design, scope or timing.
This release integrates the Regulatory Implementation Roadmap – Version 7 and NEM2025 Implementation Roadmap – Version 2 to provide a holistic view of the reform and IT uplift initiatives over the coming years.
The Roadmap incorporates feedback from the Reform Delivery Committee and broader industry, including the 11 May 2022 roadmap stakeholder forum.
The Roadmap including all associated supporting materials are available below.
NEM Reform Implementation Roadmap v.1260.84 KB
NEM2025 Program Scope360.12 KB
NEM2025 Gate 1 Business Case - Industry version1.17 MB
NEM2025 Initiative Briefs949.54 KB
NEM Reform Implementation Roadmap Governance - Statement of Approach311.07 KB
Forum feedback summary 11 May 2022263.91 KB
Forum presentation 11 May 20221.65 MB
Participant Impact Assessments146.83 KB
Regulatory Implementation Roadmap - Version 6
The sixth version of the regulatory implementation roadmap (roadmap) incorporates feedback from the 24 November 2021 regulatory roadmap stakeholder forum and was updated to reflect the final rules for integrating energy storage systems made by the Australian Energy Market Commission and consumer data right made by the Minister for Superannuation, Financial Services and Digital Economy.
This version of the roadmap provided greater detail on Energy Security Board’s (ESB) post 2025 reform initiatives following National Cabinet’s endorsement in October 2021.
Regulatory Implementation Roadmap - Version 5
The fifth version of the regulatory implementation roadmap (roadmap) was updated to reflect the progress of several rule change processes including fast frequency response market ancillary service and integrating energy storage systems.
Regulatory Implementation Roadmap - Version 4
The fourth version of the regulatory implementation roadmap (roadmap) was updated for an implementation delay relating to the five-minute settlement retail platform workstream as well as the rescheduling of the metering coordinator planned interruptions and MSATS standing data review.
Regulatory Roadmap - Version 3
The third version of the Roadmap takes account of final AEMC rule changes in relation to the Wholesale Demand Response (WDR) Mechanism, the three-month deferral of the implementation of Five-Minutes Settlement and Global Settlement, and Metering Coordinator Planned Interruptions.
Regulatory prioritisation advice and second Roadmap
A revised Roadmap was published on 8 May, 2020, following stakeholder engagement and submissions in response to the initial advice provided to the COAG Energy Council.
Initial regulatory prioritisation advice
In April, 2020, the Market Bodies provided advice to the COAG Energy Council, including an agreed set of objectives and criteria for considering altering the implementation dates, and an initial view of an adjusted work plan for the market bodies and industry, including the first Roadmap.