Energy Ministers approved an update to the National Electricity Objective (NEO) which embeds emissions reduction as part of the long-term interests of electricity consumers.  

This has been passed by the South Australian Parliament and is included in the national energy laws.

The Reliability Panel (Panel) has developed a final guide on applying the updated NEO to its work, following stakeholder consultation on the draft guide published in August 2023. 

The context for the Reliability Panel’s consultation

The Panel forms part of the AEMC’s institutional arrangements and has its functions and powers conferred on it within the National Electricity Law and National Electricity Rules (NER). 

The Panel applies the NEO in its work in accordance with the NER and as specified in terms of reference from the AEMC. This includes the Panel’s work on the reliability standard and settings, the frequency operating standards, and the system restart standard, among other projects.

Where the Panel has decided or is otherwise required to consider the NEO in making a recommendation or determination, the Panel will consider impacts on emissions reduction targets as outlined in this guide, and with reference to the guidance developed by the AEMC. 

The Panel, however, will retain the flexibility to determine how to apply the AEMC’s guidance on emissions to specific Panel reviews and determinations.

The Panel sought stakeholder feedback on whether its guide clearly explains how the Panel will consider the emissions reduction component in its work, and whether further guidance would be helpful. 

The AEMC guide

The AEMC concurrently consulted on its guide to the application of the emissions component of the national energy objectives. 

Written submissions were due by 18 August 2023. 

The guide has since been finalised and was published on the 22 September 2023. It can be found on the AEMC’s project webpage.

Background 

For further information, please see the Commonwealth Department’s webpage Incorporating an emissions reduction objective into the national energy objectives.

The specific changes to the national energy objectives are set out in the Statutes Amendment (National Energy Laws) (Emissions Reduction Objectives) Bill 2023.