Community Power Agency has welcomed the Australian Energy Market Operator’s (AEMO) engagement with Distribution Network Service Providers (DNSPs), describing it as a promising and much-needed development in national energy planning that could unlock a new wave of community-scale energy solutions and build social licence in the shift to renewables.
The endorsement follows the release of AEMO’s Draft 2025 Electricity Network Options Report, which, for the first time, expands the focus beyond large-scale transmission to include opportunities for investment in distribution networks — key infrastructure that connects local renewable projects and consumer energy resources like rooftop solar and batteries to the grid.
The report acknowledges that previous planning efforts have centred on consumer energy uptake and major transmission projects, some of which have faced social licence challenges.
Kim Mallee, Director of Community Power Agency, said: “Although large-scale renewable developments, and the transmission network connecting them, are critical in the shift to renewables, we’re pleased to see AEMO now actively considering how the distribution network can also be part of the solution.”
She added: “To date, the regulatory environment has favoured utility-scale developments. That has left community-scale projects in a kind of policy ‘no man’s land’, despite their proven benefits and strong local support.”
Community-scale projects — typically sized between 1–10 MW — are well suited to community ownership or leadership, offering local participation and tangible benefits while accelerating the rollout of renewables.
Examples like the Hepburn Wind Farm, Goulburn Solar Farm, and the Haystacks Solar Garden demonstrate how such initiatives can deliver energy access, especially for renters and apartment dwellers, and foster public support for the energy transition.
AEMO’s new approach, which includes close consultation with DNSPs and a broader consideration of social licence, signals a shift towards integrating both transmission and distribution networks in future planning.
This is expected to open new pathways for small to mid-scale renewable projects and encourage community participation in non-network solutions such as energy efficiency, demand response, virtual power plants, and community battery programs.
Community Power Agency has long advocated for planning that enables people to participate in and benefit from the renewable shift, and says that leveraging the distribution network is a significant step towards a fairer, faster, and ultimately cheaper energy transformation.
