Principles to guide Capacity Mechanism Development
Post date: Friday, 01st October 2021
Post-2025 Energy Market Reforms
National Cabinet discussed and agreed to the recommendations of the Energy National Cabinet Reform Committee, chaired by the Minister for Energy and Emissions Reduction, the Hon Angus Taylor MP, on a final package of reforms for the Post-2025 National Electricity Market.
The full suite of reforms sets out a pathway of immediate, initial and long-term changes to deliver a fit-for-purpose electricity market into the future. This pathway includes agreement to progress further work on a mechanism that specifically values capacity in the NEM. Work on a capacity mechanism is to be underpinned by a set of design principles, agreed by Energy Ministers.
The proposed reforms act on the recommendations of the ESB, following two years of widespread consultation and in-depth analysis. This outcome is a significant achievement, and is a demonstration of a shared commitment across all NEM jurisdictions to deliver affordable, reliable electricity to consumers.
The capacity mechanism priniciples can be found here.
The Prime Minister's media release regarding Energy National Cabinet Reform Committee can be found here.