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.

Not ready to commit yet?
  • 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

August 29, 2025
Chinese module maker JA Solar has launched DesertBlue, a PV module designed for desert and semi-arid regions. 
August 29, 2025
US grid interconnection agreements grew by 33% in 2024, reaching 75GW, with three-quarters signed for solar PV and battery energy storage system (BESS) projects, according to a new report from energy market analyst Wood Mackenzie.
August 29, 2025
Meridian Energy and Nova Energy have established a JV to build and operate a 400MW solar plant in Rangitaiki near Taupo in New Zealand.
August 28, 2025
Indian solar manufacturing firm INA Solar has broken ground on its fourth 4.5GW cell production plant in Narmadapuram, Madhya Pradesh.
Premium
August 28, 2025
US solar companies could potentially pay “tens of billions” of dollars in retroactive duties on products imported from Southeast Asia between June 2022 and June 2024, following a decision from the US Court of International Trade (CIT).
August 28, 2025
Boviet Solar has completed exterior construction work on its 3GW PV cell manufacturing facility in Greenville, Pitt County, North Carolina. 

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines