The AEMC is clearing the way for critical energy infrastructure projects to proceed. 

The Australian Energy Market Commission (AEMC) has finalised a rule allowing greater flexibility in allocating costs for interconnector projects across the National Electricity Market (NEM). 

This change, aimed at supporting Australia’s transition to net zero, addresses the need for improved transmission infrastructure linking electricity markets across states.

Proposed by Federal Energy Minister Chris Bowen, alongside Victorian Minister Lily D'Ambrosio and Tasmanian Minister Nick Duigan, the rule introduces a framework allowing jurisdictions to agree on cost-sharing for interconnectors. 

These projects, considered crucial to the NEM, have often faced delays due to funding disputes.

“Improving connectivity between states is an important component of Australia transitioning to net zero,” said AEMC Chair Anna Collyer. 

The flexibility provided is designed to remove barriers that would otherwise hinder critical projects, ensuring their timely progress.

The new rule also includes transparency measures, requiring governments to publish their cost-sharing agreements. 

“We believe this final rule strikes an appropriate balance between ensuring transparency and providing jurisdictions sufficient flexibility to progress net beneficial interconnector projects,” Collyer said.

Existing regulatory safeguards, such as the Regulatory Investment Test for Transmission and AEMO’s feedback loop, remain in place to ensure projects deliver benefits. 

The rule takes effect on 3 July 2025, covering projects in the 2026-2027 financial year.

More details are accessible here.

CareerSpot This email address is being protected from spambots. You need JavaScript enabled to view it.