On 7 January 2022, the AER completed a transparency review of the Australian Energy Market Operator’s (AEMO) draft 2022 Integrated System Plan (ISP) for the National Electricity Market (NEM). The National Electricity Rules require the AER to finalise a transparency review of AEMO’s draft ISP one month following its publication. AEMO published its draft 2022 ISP on 10 December 2021.
Our transparency review assesses the adequacy of AEMO’s explanations of the derivation of key inputs and assumptions, and how key inputs and assumptions contributed to AEMO’s draft 2022 ISP outcomes. The review was not intended to assess the merits of AEMO decisions.
The report concludes that AEMO has adequately explained the majority of its inputs and assumptions, and how they contribute to the draft ISP outcomes. The report also identifies some aspects of the draft ISP where better explanations of how inputs and assumptions contribute to draft ISP outcomes, would improve transparency. The report requires AEMO to consult on these issues in an addendum to the draft ISP.