The AER has conducted a transparency review of the Australian Energy Market Operator’s (AEMO) draft 2024 Integrated System Plan (ISP) for the National Electricity Market.
AEMO released its draft ISP for public consultation on 15 December 2023.
Our report looks at whether AEMO was adequately transparent in explaining its inputs and assumptions, and how they have contributed to outcomes in the draft plan.
The review is not intended to assess the merits of AEMO’s decisions.
Transparency in understanding AEMO’s approach helps to promote understanding and confidence in the ISP.
Our review concludes that AEMO has adequately explained most of its inputs and assumptions and how they contribute to the ISP outcomes. However, we consider there are some aspects that should be better explained in areas, including:
- the scenarios used for sensitivity analysis
- the assumptions underpinning customer energy resources forecasts
- how the modelling results for the draft ISP align with the policy commitments in renewable energy zones (REZ)
- how storage and firming capacity was included in the modelling, and how this affected the capacity and energy generation in each REZ, and
- how system security remediation costs are reflected in the modelling results.
AEMO is required to provide further explanation in an addendum to the draft ISP and consult on these issues.