Australian government launches review of the NEM to facilitate renewables growth

Facebook
Twitter
LinkedIn
Reddit
Email
The NEM is expected to add around 150GW of solar PV, wind and energy storage capacity by 2043. Image: Queensland Department of Energy and Public Works.

The Australian government has commenced a review of the National Electricity Market (NEM) to identify how it will operate in the coming decades and facilitate the uptake of solar PV.

The review will examine keeping household bills low while better managing rooftop solar and utility-scale renewable energy generation uptake.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

An independent panel, led by Griffith University associate professor Tim Nelson and consisting of Paula Conboy, Ava Hancock, and Philip Hirschhorn, will undertake widespread consultation and make its final recommendations to energy and climate ministers in late 2025.

Australia’s NEM covers South Australia, Tasmania, Victoria, New South Wales, ACT, and Queensland and is predominantly oriented towards a baseload power grid comprising mainly coal generators.

 The review comes as coal-fired power stations are likely to close by 2038, as indicated in an AEMO report released earlier this year and further backed up by the Clean Energy Council (CEC) CEO Kane Thornton, who told PV Tech that AEMO’s prediction was “same timeframe that we [the CEC] are working towards”.

However, it should be noted that Cornwall Insight’s Thomas Fitzsimons said that although Australia has made solid progress in increasing renewable energy generation, with the NEM having added 1.2GW of large-scale solar PV in 12 months, coal-fired power will still play a role in the electricity mix for the next few decades with the last to shut in the 2050s.

It is also worth noting that coal-fired power generation will be overtaken by rooftop solar PV by the end of 2024. Without a proper review of the NEM, this could cripple the rollout of renewable energy generation and not optimise its integration.

This also appears to be more urgent with Cornwall Insight stating that it is likely that the NEM will add 150GW of solar PV, wind and energy storage capacity by 2043. A report outlines that the installed capacity for these technologies is expected to rise from 52GW in 2025 to 208GW by 2043, representing a 300% increase.

Australia’s minister for climate change and energy, Chris Bowen, said the work that is being done now by the government would help support the country’s energy transition in the years to come.

“We’re doing the work now to ensure our grid will be stable and there will be enough clean, cheap, reliable renewable generation and storage to power Australia’s needs,” Bowen said.

Read Next

June 10, 2025
Australia’s Queensland government has confirmed an AU$2.4 billion investment in the CopperString transmission project, aiming to extend the National Electricity Market (NEM) to the North West Minerals Province.
Premium
June 9, 2025
N-type polysilicon prices have dropped to RMB34,000/ton as the project installation rush ends, putting cost pressure on the industrial chain.
June 9, 2025
Sonnedix has signed a power purchase agreement (PPA) with Renfe to supply 420GWh of renewable energy annually for its commercial operations.
June 9, 2025
Saatvik Solar, a unit of Saatvik Green Energy Limited (SGEL), is building a 4.8GW solar cell and 4GW module manufacturing facility in Ganjam district of Odisha.
June 9, 2025
Growing political headwinds threaten to dent US solar manufacturing and project deployment, despite a strong start to 2025.
June 6, 2025
Independent power producer (IPP) NOA Group has reached financial close on a 349MW solar PV project in South Africa.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Upcoming Webinars
June 30, 2025
10am PST / 6pm BST
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
September 16, 2025
Athens, Greece