The Australian Energy Market Commission (AEMC) has proposed new rules to overhaul how distribution networks plan for the shift towards renewable energy, a move that will modernise the system.
The reform aims to provide unprecedented visibility into the low-voltage network to ensure the grid can handle the rapid uptake of Consumer Energy Resources (CER).
AEMC Chair Anna Collyer likened the current planning framework to an outdated paper map, arguing that the new rules would provide a digital-age upgrade.
“It’s like upgrading the planning tools from an old street directory to Google Maps, where we can see more clearly, respond earlier and ensure the grid works for everyone,” Collyer said.
“With detailed visibility of where solar, batteries and EVs are emerging, DNSPs and investors can plan ahead through targeted upgrades or non-network solutions.”
The proposed Distribution Network Development Plan will require network providers to use granular data to identify exactly where constraints are emerging.
This street-level insight is expected to reduce the curtailment of rooftop solar, where households are blocked from exporting power, and help identify the best locations for community batteries and EV charging hubs.
With network costs currently accounting for nearly half of the average Australian electricity bill, the AEMC argues that smarter planning is the most effective way to keep prices down.
By using data to avoid unnecessary and expensive “gold-plating” of the grid, the Commission expects the reform to lead to more efficient investment decisions that eventually flow through to consumer pockets.
Other features of the proposed draft rules include standardised and flexible data reporting across all providers to improve consistency and transparency. The new rules will also include flexible data reporting requirements that can evolve with new technologies and services.
The reform aligns with the National CER Roadmap and is one of the AEMC’s top priorities for the 2025-26 financial year.
Stakeholders have until June 4 to provide feedback, with a final determination expected by mid-year.
