Author: Cameron O'Reilly. (Dec 2024)
In November 2024, the Federal Minister for Energy and Climate Change, Chris Bowen, announced an expert review of the National Electricity Market (NEM) settings, ostensibly to support ongoing investment in firmed renewable energy and storage after the existing Capacity Investment Scheme (CIS) winds down in 2027.
The review is called the Nelson Review, after its chairman Tim Nelson. The review is likely to take at least a year. It seems likely that some form of capacity mechanism within the NEM will be considered.
Post 2030 this may supplant current measures like the CIS as the driver of the future system. The least likely outcome from the review is business as usual.
Whatever the final recommendations, implementation will take some time as the NEM requires mirror legislation in all participating jurisdictions.
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