September2024ACONSUMER-FOCUSEDNETZEROENERGYSYSTEMTheAustralianEnergyMarketCommission’svisionforoursharedenergyfutureTheAEMCacknowledgesandshowsrespectforthetraditionalcustodiansofthemanydifferentlandsacrossAustraliaonwhichweallliveandwork.WepayrespecttoallElderspastandpresentandtothecontinuingconnectionofAboriginalandTorresStraitIslanderpeoplestoCountry.TheAEMCofficeislocatedonthelandtraditionallyownedbytheGadigalpeopleoftheEoranation.|2AEMCNarrative|3AbouttheAEMCTheAustralianEnergyMarketCommission(AEMC)isanindependentstatutorybodythatworksforAustralia'sfutureproductivityandlivingstandardsbycontributingtoadecarbonising,affordableandreliableenergysystemforconsumers.Welisten,makepracticalrulechangesandprovideexpertadviceinarapidlychangingworld.Welead,collaborate,adaptandinfluenceinmakingandamendingrulesfortheNationalElectricityMarket,elementsofthenaturalgasmarketandrelatedretailmarkets;andprovidingstrategicandoperationaladviceonenergyissuestotheEnergyandClimateChangeMinisterialCouncil.TheNationalElectricity,GasandRetailRulesmadebytheAEMChavetheforceoflawandundertheNationalEnergyLaws,alloftheAEMC’sworkisguidedbythelegislatednationalenergyobjectives.CopyrightThisworkiscopyright.TheCopyrightAct1968(Commonwealth)permitsfairdealingforstudy,research,newsreporting,criticismandreview.Youmayreproduceselectedpassages,tablesordiagramsforthesepurposesprovidedyouacknowledgethesource.CitationTocitethisdocument,pleaseuse:AEMC,fulltitle,month,year.AEMCNarrative1Foreword52ExecutiveSummary63Ourvision:aconsumer-focusednetzeroenergysystem93.1ProvidingforAustralianconsumers93.2Theessentialcharacteristicsfortransition103.3Thebroadcontextfortheenergytransition124Ourguidance:longer-termchallengesandopportunities144.1Equitableenergyoutcomesacrosshouseholds154.2Energysystemsecurityandreliability164.3Coordinationofenergypolicyandotherpolicyareas174.4Levelsofsocialtrustthatsupportchange194.5Deliveringcapital,labourandotherresources204.6Meetingcommunity,environmentalandinfrastructureneeds224.7Accessibledatathatsupportstheevolvingenergysystem234.8Transitionplanningfortheroleofgas245Ouractions:focusareasfortheAEMC275.1Understandconsumerbehavioursandpreferences295.2Considerhowtofosterrapidelectrificationofvehicles315.3Considertheregulatoryframeworkforgas315.4Understandtheimpactofachangingclimate325.5AEMCtoolbox346Appendix:AstructuredmethodunderpinsAEMC’sperspective36|4CONTENTSAEMCNarrative|5FOREWORDBeforewehadsatellitesandGPS,wayfarersnavigatedbythestars.Theyidentifiedthebrightlightsandconstellationsthatcouldbetrustedtopointtowheretheywantedtoland.Theylearnedwhichstarsstayedconstantandwhichonesmovedwiththeseasonsortheirtransitoftheearth.Theycreatedstoriesabouttheshapesintheskythathelpedmemorisethesequencesofstarstheyneededtofollow,andthesestoriesmadeiteasiertosharedirectionswithothers.ThedocumentbeforeyouisjustonewaytheAEMCisnavigatingitspathtoafuturedestination.Likemodernsailors,wehaveaccesstoenormousexperienceandtechnologytohelppredictwhereoureffortsarebestdirected,andliketheancients,weknowthatanarrativeisanexcellentwaytocaptureourknowledgeandshareitovertime.TheenergysectorinAustralia,andaroundtheworldisexperiencingchangeatthescaleoftheIndustrialRevolution,onlyverymuchfaster.Withdomesticandcommercialenergycurrentlyoneoftheworld’smostsignificantsourcesofclimate-damagingcarbon,thetraditionalwayswepr...
