AEMO’s submission to the ISP Review outlines its current perspective on the evolving planning landscape and the role of the ISP. The submission is intended to contribute to the AEMC’s ongoing consultation and consideration of the future framework.
AEMO has provided a submission to the Australian Energy Market Commission’s ongoing review of the Integrated System Plan framework. The submission outlines AEMO’s views on opportunities to strengthen the ISP as the energy system and broader planning environment continue to evolve.
AEMO considers that the ISP should remain a critical national planning tool, while adapting over time to work more effectively alongside jurisdictional planning frameworks, emerging investment mechanisms, distribution system planning and consumer energy resources. The submission will inform the AEMC’s continuing consultation and assessment of potential future reforms.
The submission focuses on three key themes:
- Recognising the changing planning environment and the increasing importance of coordination across national, jurisdictional and other planning processes
- Maintaining the ISP’s unique NEM-wide perspective to help identify system-wide trade-offs, investment needs and consumer outcomes that may not be visible through individual state or local planning processes
- Distinguishing between near-term practical improvements to current arrangements and longer-term opportunities for structural change.
AEMO’s submission highlights the continued value of the ISP within the planning ecosystem and notes the importance of effective interactions with other planning mechanisms.
“Our submission highlights the continued value of national planning for consumers, including through consideration of generation, storage, network and demand-side developments from a whole-of-system perspective,” AEMO Executive General Manager Nicola Falcon says.
The submission also discusses a number of areas that may warrant further consideration through the Review, including clarifying project actionability, interactions between the ISP, Inputs, Assumptions and Scenarios Report and Regulatory Investment Test for Transmission processes, treatment of material changes, and providing greater certainty for projects that have progressed through planning and approval pathways. It also raises opportunities for stronger coordination between electricity and gas planning over time.
“The Review provides an opportunity to consider how planning arrangements may continue to evolve as the energy system becomes more complex,” Ms Falcon says. “Our submission highlights the ongoing value of the ISP’s system-wide perspective and shares AEMO’s perspectives on a number of issues raised through the consultation process.”
For more information about the AEMC's review of the ISP framework or to download a copy of AEMOs submission, visit the AEMC ISP Review webpage.