The Australian Energy Market Operator (AEMO) has today published the Draft 2025 Electricity Network Options Report for consultation.
The Draft 2025 Electricity Network Options Report is our two-yearly consultation on network inputs that will inform the development of the 2026 Integrated System Plan (ISP). The network options outlined in this report are used in the modelling to determine the ISP’s Optimal Development Path. AEMO develops, consults and publishes the draft network options report, together with other forecasting and planning reports, to improve the accuracy and transparency as a key part of the development of the ISP.
The draft 2025 report has been expanded in line with recommendations set out in the 2024 Review of the ISP endorsed by Energy Ministers. This includes identifying, in addition to transmission options, opportunities for investment to facilitate the operation of forecasted uptake of consumer energy resources and other distributed resources, and further consideration of social licence for transmission.
The draft 2025 report includes updated and new transmission options, prepared through AEMO’s close consultation with transmission network service providers, distribution network service providers, jurisdictional bodies as well as through engagement with the ISP Consumer Panel and AEMO’s Consumer and Community Reference Group on approaches to incorporating social licence.
AEMO’s Transmission Cost Database has also been updated to reflect changes in costs for overhead lines, due to supply chain constraints, competition, project complexity, contracting and social licence considerations. After accounting for inflation, cost estimates provided in this report show approximately 25% to 55% increase in real costs for overhead transmission line projects compared to equivalent cost estimates prepared for the 2024 ISP, and approximately 10% to 35% increase in real costs for transmission substation projects. This is in line with increases announced for recent projects.
When preparing the 2026 ISP, AEMO will consider these costs as part of identifying an efficient Optimal Development Path that is in the long-term interests of electricity consumers.
AEMO has further considered social licence as part of identifying transmission network options, including incorporating new land use analysis, and applying additional costs where route changes may be needed to avoid areas of high social, environmental, agricultural or cultural significance.
New gas infrastructure options report published
Today, AEMO has also released the Draft 2025 Gas Infrastructure Options Report to consult on gas infrastructure options and gas infrastructure cost components that will be used to develop gas development projections for the 2026 ISP.
This is a new report that actions a new rule change requirement to support the ‘better integration of gas into the ISP’ set out in the 2024 Review of the ISP endorsed by Energy Ministers.
The purpose of better integrating gas into the ISP is to inform the electricity Optimal Development Path, ensuring that the electricity investments – particularly in gas powered generation (GPG) – are considerate of and resilient to the capacity, availability and limitations of gas as a fuel for electricity generation.
AEMO is looking forward to engagement with industry, government and other stakeholders in this consultation.
How to get involved
AEMO invites interested stakeholders to engage with us in these upcoming webinars:
- Draft 2025 Electricity Network Options Report: Publication webinar 9am to 10.30pm (AEST) Friday 6 June 2025. Register here to attend.
- Draft 2025 Gas Infrastructure Options Report: Publication webinar 3.30pm to 4.30pm (AEST) Thursday 29 May 2025. Register here to attend.
AEMO welcomes stakeholder feedback on any matters raised in these reports with submissions due by 5.00pm (AEST) 23 June 2025 to ISP@aemo.com.au.
For further information about what the ISP considers and how it is developed, please view our ISP fact sheet.
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