The Council is committed to exploring innovative approaches to managing the transition of the energy system, through work such as the development of the National Hydrogen Strategy.
Energy & Carbon Policy
The electricity sector contributes around one third of Australia's total emissions, so has a critical role in meeting emissions reductions targets. The Commonwealth, states, and territories have a range of policies that aim to reduce emissions in the electricity sector.
The National Energy Productivity Plan (NEPP) is designed to increase the value we get from our investment in energy. It's an effective way to lower emissions and reduce costs, while improving our competitiveness and growing the economy and jobs.
The E3 Program
The Equipment Energy Efficiency (E3) program increases the energy efficiency of appliances to reduce energy use, emissions and to help save households and businesses money.
The Council is committed to ensuring the reliability of Australia’s energy markets through initiatives such as the Retailer Reliability Obligation (RRO).
The RRO commenced on 1 July 2019. It was designed by the independent Energy Security Board to provide an incentive to market participants to invest in the right technologies in regions where it is needed, to support reliability in the National Electricity Market.
The COAG Energy Council (the Council) is a Ministerial forum made up of representatives of the Commonwealth, State, Territory and New Zealand governments. It has responsibility for monitoring and reforming national energy markets. This includes increasing the nationwide consistency of national energy market regulatory frameworks to reduce costs and improve energy sector efficiency. More information can be found in the Council’s Terms of Reference.
The role of the Council in energy market reform and the associated governance arrangements are set out the intergovernmental agreement known as the Australian Energy Market Agreement (AEMA), as amended December 2013.
The Council is supported in developing national energy market policy by the Senior Committee of Officials (SCO). SCO is composed of senior officials from Council members and is chaired by the Commonwealth.
The Council has oversight of the three national market institutions responsible for the operation of national energy markets, including the National Electricity Market (NEM). These are:
- the Australian Energy Market Commission - the rule maker and market development adviser;
- the Australian Energy Market Operator - the system operator; and
- the Australian Energy Regulator - the economic regulator and rule enforcer.
The Energy Security Board (ESB) was established in August 2017 by the Council to coordinate the implementation of the reform blueprint produced by Australia's Chief Scientist, Dr Alan Finkel.
The ESB will also provide whole of system oversight for energy security and reliability to drive better outcomes for consumers. The ESB reports to the Council.
A comprehensive review of energy market governance, the Review of Governance Arrangements in Australian Energy Markets, was completed in October 2015 and was considered by Ministers at the December 2015 Council meeting. For more information about the Review, click here.
The Council also works closely with:
- Energy Consumers Australia - advocate for the long-term interests of energy consumers; and the
- National Offshore Petroleum Safety and Environmental Management Authority - regulators of safety, well integrity and environmental management for the offshore petroleum industry.
An overview on the Energy Market Governance Framework.