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Hey Reader, in today's edition:
- Energy ministers agree on new investment mechanism
- Self-determination to de-risk projects
- Victoria tweaks transmission plan
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Setting the next phase
Energy Ministers have agreed to high-level principles for the detailed design of a new investment mechanism to support continued investment in the National Electricity Market when the Capacity Investment Scheme ends in 2027. The next phase of work will focus on the institutional governance, a legal framework, and cost recovery arrangements.
Gas remains a “critical firming option for renewables, an essential source of both energy and feedstock for industrial processes and critical to the economy” in the transition to net zero.
The Energy and Climate Change Ministerial Council received an update from officials working up an extension of powers for the East Coast Gas Market intervention, with a December 2025 deadline set for a draft regulatory package (Bill, Rules and Regulations), followed by consultation and final consideration no later than mid-February 2026.
Ministers agreed the proposed powers would:
- only be used as a last resort
- enable ministers from directly affected jurisdictions to determine whether the powers are used, the scope of competitive tenders and what solutions should be prioritised
- require AEMO to provide robust analysis to ministers on the impacts of options including analysis on the longer term impact on gas prices in the East Coast Gas Market revealed through competitive tenders
- include an equitable cost recovery mechanism
- preserve market incentives to invest.
Advice on the growth in data centres and what it means for Australia’s electricity systems will also be finalised later in the year, detailing the circumstances in each jurisdiction.
The National Consumer Energy Resources Roadmap gets more detail with green light to release consultation papers on interoperability standards and a technical regulatory framework.
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Expert view
“The proposed National Technical Regulatory Framework for consumer energy resources shifts us from patchwork, voluntary or jurisdictional mechanisms to a nationally consistent, mandatory regulatory regime governing all major elements in the DER lifecycle. This is a direct response to historic problems of jurisdictional discordance and lack of authority in previous standards efforts. We have of course already been here before, including in 2020, with Kerry Schott’s rule change request which sought to amend the National Electricity Rules (NER) to create a framework for the governance and development of DER/CER technical standards.
However, the more contentious and challenging aspects of regulatory design—those which will have real impact on implementation—are not yet detailed.
For example, under what legislative umbrella will the National Technical Code sit? Will it be embedded under the National Electricity Law or Rules, referenced as a subordinate instrument, perhaps? Could Clean Energy Regulator legislation be used?
The draft envisages, but does not specify, a national regulator or lead agency.
Are Greenhouse and Energy Minimum (GEMS) appliances and demand-responsive behind-the-meter (BTM) devices and BTM interoperability in scope?
Responsibility for regulating dynamic operating envelopes (DOEs) is not allocated to the technical regulator in the draft. Given the lack of consistent deployment of DOEs, this is an urgent question that needs to be answered in consumers’ interests.
Bringing legacy (pre-existing) devices into compliance is intentionally left out of immediate, mandatory regulatory obligations.
So, as we pass the one-year mark since the launch of the National Consumer Energy Resources Roadmap, with its stated aim of standing up a regulator in 2026, there is much to be done. With over a thousand new BTM batteries lighting up homes and businesses every workday and the clock ticking, leadership and rapid consensus are essential.”
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Gabrielle Kuiper
Energy, sustainability and climate change professional
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Self-determination to de-risk projects
Australia has been urged to build up the capacity of Traditional Owner groups to make the call on what they need and how involved they want to be in owning and developing a project.
“When we’re trying to do the transition fast but with justice, what can be replicated is going to matter,” First Nations Clean Energy Network Co-Chair Karrina Nolan told The Energy.
The more people are resourced, with good governance, the more people can make creative and innovative calls about what sorts of benefits they want to see in their community, Nolan said.
Research prepared for Treasurer Jim Chalmers’ productivity roundtable found effective engagement from the beginning of a project was beneficial for international and local investors and it can de-risk a project for Traditional Owners as well, she added.
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Expert view
“What we’ve discovered, not just as the First Nations Clean Energy Network but also our work with Original Power, is that even if it’s a community-run project, like the ones we’re doing in the Northern Territory, you still have to go through all those same steps around community engagement, community buy-in, who are the decision makers, what’s in it for people. All that social licence work has to be done well, with the right people from the asset, no matter what the scale of the project – that’s really key.
When we first started, hardly anyone knew what the options were. And sometimes the proponents would say ‘look we’re not sure exactly of the tech or the size or the workforce required, or even necessarily the land footprint required,’ and they would go to communities with a not entirely baked idea and ask for genuine consent and engagement, and people would ask ‘what exactly are we consenting to?’ I think that’s been a difficulty we’ve all had to navigate, both proponents and communities, because things change.”
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Karrina Nolan
First Nations Clean Energy Network Co-Chair
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Victoria tweaks transmission plan
VicGrid released an amended 2025 Victorian Transmission Plan to support the closure of coal-fired generation. It sets out six areas most suitable to host wind and solar generation, a proposed Gippsland Shoreline Renewable Energy Zone (REZ) to support offshore wind infrastructure, and transmission network upgrades needed from 2025-2040.
Responding to criticism, VicGrid has adjusted the size and shape of the zones with some areas removed from or added to zones, and new separate sections added in the South West REZ and Central North REZ. The Wimmera Mallee REZ has been expanded to allow for an increased number of projects currently in development and will now join the Grampians Wimmera REZ as one Western REZ, despite not being physically connected.
There was also clear feedback from industry stakeholders about the size of zones. “Industry stakeholders consistently told us the size of zones and the amount of energy generated from each zone needed to be at a level that enabled the development of technically and commercially viable renewable projects,” VicGrid Chief Executive Alistair Parker said.
Not implementing the plan would prevent new cheap renewables from being connected, put Victoria’s energy security at risk and cost the economy $9.6 billion over the next 30 years, Parker said. A six-week consultation period will provide information and take feedback from landholders, communities and Traditional Owners before the zones are formally declared.
Meanwhile Victoria hit record levels of renewable energy generation (42% in FY25), Energy Minister Lily D’Ambrosio said, putting the state well on track to meet targets and Victorians paying the lowest wholesale power prices in the country. (9News)
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Catch Up
Capital
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The Data Center Coalition, which represents owners including Google, Amazon and Microsoft, called on US Treasury Secretary Scott Bessent to uphold existing rules for wind and solar energy subsidies, saying they have enabled the industry to grow quickly and stay ahead of competition from China. (Reuters)
OX2’s Muswellbrook Solar Farm received EPBC approval for a 135MW solar farm and a 135MW Battery Energy Storage System (BESS) that can supply up to two hours of storage. (ESDNews)
“This is a leading example of the transition of the Upper Hunter Valley from coal mining to innovative post-mining land uses. The Muswellbrook solar project is an early mover in the re-purposing of a coal mine into an energy generation site and serves as an important test case for the broader region.”
Catherine Way
OX2 Australia director of development
 Projects
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Many projects are being held back by delayed transmission projects and lengthy planning and environment assessments, the Clean Energy Council (CEC) warned, citing the second successive quarter of weaker investment in new renewable energy and storage projects.
“We need unprecedented levels of focus, collaboration and problem-solving between Federal and State governments, industry and stakeholders to urgently clear hurdles to new investment. The clean energy build is not a ‘’nice to have’’, this is a ‘’must have’’. The reliability and affordability of our electricity system depends on it.”
Anna Freeman
Acting Chief Policy and Impact Officer, Clean Energy Council
The June quarter saw the lowest level of investment in large-scale battery storage in almost two years at 334MW – less than a quarter of the levels seen in Q1. However, despite a slower quarter, with three projects reaching financial close in Q2, battery storage generation remained on track to meet and beat deployment levels under AEMO’s Step Change scenario, with newly committed capacity exceeding 1000MWh for nine consecutive quarters.
Policy
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Federal, state and territory governments agreed to develop a mandatory recycling scheme to prevent solar panels ending up in landfill. Annual solar panel waste volumes in Australia are predicted to nearly double over the next five years, to 91,165 tonnes, but 95% of a solar panel is recyclable. The Smart Energy Council estimates around one-third of solar panels could be re-used instead of being thrown away.
“This work builds on the momentum of our nation-leading reform on batteries, and the new legislation already in place in NSW to enable a mandatory product stewardship scheme – ensuring suppliers take responsibility for the safe design, recycling and disposal of their products.”
Penny Sharpe
NSW Minister for Energy and the Environment
Tony Abbott signed Australia up to the Paris Agreement, it was ratified under Malcolm Turnbull, and support for net zero by 2050 has been a consistent position of the Coalition at four elections.
“The difference is, under the Albanese government, they elevated net-zero emissions above energy reliability, energy security, economic sovereignty, and, of course, other considerations like national security … You need to have things in a position of balance of policy to make sure that we can grow the future of the Australian economy, because that's also the basis of social licence to cut emissions as well. — Liberal MP Tim Wilson told ABC’s Insiders
The Coalition’s net-zero review could take a year, according to Shadow Energy Minister Dan Tehan, requiring a nuclear policy, a gas policy, and a coal policy.
Regulation
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In the wake of the 2023 Dyer Review, a new Renewable Energy Developer Rating Scheme will require developers and transmission companies to give clear and independent information to farmers and regional communities. Developed and operated by Equifax Australasia Credit Ratings, a pilot program will be tested by 60 developers before the scheme launches more broadly in March 2026.
“Community support is critical to the success of the renewable energy transition and the rollout of the Renewable Energy Developer Rating Scheme will ensure we hold the entire industry to account … Squadron has been appointed to the pilot panel and we look forward to working with the supplier to design and test the scheme to provide the community with a tool to help guide who they want to work with. It will also play an important role in encouraging developers to step up to meet community standards, or step out of the industry.”
Rob Wheals
Squadron Energy CEO
Technology
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A new wave of clean-energy innovation is building and US President Donald Trump’s attacks on wind and solar will not stop it. (The Economist)
Climate
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Australia’s Treasury released Climate Related Transition Planning Guidance for feedback. Due to be finalised by the end of 2025, it is a priority under the sustainable finance roadmap. The guidance aims to:
- support international alignment to make it easier to compare transition plans
- outline domestic policy and regulatory considerations
- balance encouraging high ambition with providing flexibility
- take a climate first but not only approach.
New polling by Essential Media for an alliance of environmental and social groups found 75% of 2,000 Australians believe climate change is increasing the cost of living, and 62% agree that coal, oil and gas corporations should pay for the damage caused by their climate pollution. The ‘Make Big Polluters Pay’ alliance called for a “Climate Pollution Levy” on coal, gas and oil corporations, which they said could raise $46 billion a year for climate action.
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What's On
August 18
National Press Club
Productivity Commission Chair Danielle Wood will speak on the “Growth imperative: How to fix our productivity problem” at this event in Canberra.
August 18
NEM Review Draft Report - Spot Markets
This is the first in a series of online forums with the Panel undertaking the National Electricity Market wholesale market settings review.
August 20
Green hydrogen as an alternative to natural gas
Michael Bielinski, Head of Projects Asia Pacific at Siemens Energy, will speak at this hybrid Melbourne Energy Institute event.
August 21
NEM Review Draft Report - Derivative Markets
This is a second in a series of online forums with the Panel undertaking the National Electricity Market wholesale market settings review.
August 26
NEM Review Draft Report - Long Term Incentives
This is the third in a series of online forums with the Panel undertaking the National Electricity Market wholesale market settings review.
August 26-27
Australian Renewable Heat Conference
Climate Change Authority Chair Matt Kean, ARENA investment manager Peter Haenke, and AGL sustainability expert Brendan Weinert will speak at this event in Sydney.
August 26-28
2025 New Zealand Wind Energy Summit
NZ Minister of Energy Simon Watts, Secretary-General of the World Wind Energy Association Stefan Gsänger, Global Wind Energy Council CEO Ben Backwell, Commerce Commission Chair Dr John Small, and Transpower Executive General Manager - Future Grid John Clarke headline this event in Wellington, NZ.
September 1-3
Farming Forever National Summit
Farmers for Climate Action CEO Natalie Collard, Rewiring Aeteroa CEO Mike Casey, NSW EnergyCo Chair Paul Binsted, ANU Director of the Institute for Climate, Energy & Disaster Solutions Professor Mark Howden and NAB Chief Climate Officer Jacqui Fox will speak at this Farmers for Climate Action event in Canberra.
September 2
Bias in action
ANU Institute for Infrastructure in Society Director Sara Bice, CEO of The Energy Charter Sabiene Heindl, Director of Partnerships and Engagement at Energy Estate Rosie King, and Head of Communications and Stakeholder Engagement at Ark Energy Melissa Pisani will speak at this renewable energy engagement webinar.
September 2-4
14th World Chambers Congress
OECD Secretary-General Mathias Cormann, CEFC Chair Steven Skala and Yurringa Energy CEO Arron Wood are among the speakers at this Melbourne event.
September 16
The Price of Power: The Future of Australia's Energy Sector
Bluescope Chief Executive, Climate Change and Sustainability Deborah Caudle, Alinta Energy CEO Jeff Dimery, AGL CEO Damien Nicks and Australian Energy Council CEO Louisa Kinnear will speak at this American Chamber of Commerce event in Melbourne, with R. Blair Thomas, CEO of US energy investment firm EIG speaking via Zoom.
RESULTS SEASON
Ampol
August 18
Petroleum refiner and fuel distributor Ampol (ASX: ALD) will announce first-half results.
Woodside Energy
August 19
Woodside Energy (ASX: WDS) CEO Meg O’Neill and CFO Graham Tiver will release half-year results and brief investors.
Santos
August 20
Santos (ASX: STO) will release half-year results.
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