The Australian Energy Regulator (AER) has conducted its transparency review of Australian Energy Market Operator’s (AEMO) draft 2022 Integrated System Plan (ISP) for the National Electricity Market (NEM).
The AER’s final report focusses on whether AEMO was adequately transparent in explaining its inputs and assumptions, and how they have contributed to outcomes in its draft 2022 ISP. Our review concludes that AEMO has adequately explained the majority of its inputs and assumptions, and how they contribute to the draft ISP outcomes. However, we consider there are some aspects of the draft ISP where AEMO should better explain how key inputs and assumptions contribute to the draft ISP outcomes. AEMO is required to provide further explanation in an addendum to the draft ISP and consult on these issues.
The National Electricity Rules (NER) 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. Transparency in understanding AEMO’s approach is considered important because it promotes stakeholder understanding of key outcomes in the draft 2022 ISP, which in turn promotes confidence in the ISP.