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.

17 June 2025
Napa, USA
PV Tech has been running PV ModuleTech Conferences since 2017. PV ModuleTech USA, on 17-18 June 2025, will be our fourth PV ModulelTech conference dedicated to the U.S. utility scale solar sector. The event will gather the key stakeholders from solar developers, solar asset owners and investors, PV manufacturing, policy-making and and all interested downstream channels and third-party entities. The goal is simple: to map out the PV module supply channels to the U.S. out to 2026 and beyond.

Read Next

December 13, 2024
Chinese solar manufacturer Trinasolar is engaged in two legal proceedings with the US government over patents and import tariffs.
December 13, 2024
The United States Studies Centre (USSC), a think tank based at the University of Sydney, has said that Australia has an opportunity to “fill niche gaps in the global solar supply chain” but risks relying on Chinese imported goods.
December 12, 2024
SEIA said that its ten-point list of priorities is designed 'to ensure the US is the world’s dominant solar and storage market.'
December 12, 2024
The standard aims to trace silicon from quartz mining to solar module production and implement management and broader ESG measures.
December 12, 2024
Australian trade association Clean Energy Investor Group has warned that the Environment Protection and Biodiversity Conservation (EPBC) Act has seen a doubling in decision-making periods from 2021 to 2023.
December 11, 2024
The money raised will support the development of the company’s C&I portfolio of more than 200 projects across the US.

Subscribe to Newsletter

Upcoming Events

Solar Media Events, Upcoming Webinars
December 18, 2024
9am GMT / 10am CET
Solar Media Events
February 4, 2025
London, UK
Solar Media Events
February 17, 2025
London, UK
Solar Media Events
February 26, 2025
Seattle, USA
Solar Media Events
March 11, 2025
Frankfurt, Germany