RE-Alliance's National Director Andrew Bray has the following comments on the review of the National Electricity Market, the final report of which was delivered to the Energy and Climate Change Ministerial Council on Tuesday 16 December 2025.
"The final National Electricity Market (NEM) review report, released today, has recognised the importance of continuing Federal Government support for a rapid shift to renewable energy. The review recommends the establishment of an Electricity Services Entry Mechanism (ESEM), to facilitate the next phase of investment in the NEM.
"The majority of state governments giving in principle support to these recommendations at the meeting of the Energy and Climate Change Ministerial Council gives regional communities confidence that state and federal governments are committed to supporting the shift to renewable energy in the regions.
"Building trust in rural and regional communities for the energy shift is critical to keeping Australia’s energy transition on track and to delivering energy projects at the lowest possible cost.
"Which is why we are disappointed that the review panel considers the achievement of broader social and economic outcomes through renewable energy projects to be ‘non-financial considerations’. This means they will not be embedded in the ESEM process (as currently done via the Capacity Investment Scheme), but as optional additional processes.
"We acknowledge the statement in the NEM review report that ‘jurisdictions should work collaboratively with stakeholders to establish NEM-wide eligibility criteria where possible’, but this provides no real certainty to communities that their issues will be properly considered. We need state and federal governments to commit to a nationally consistent approach that ensures the shift to renewable energy will drive positive social outcomes for regional communities, First Nations people and communities, workers, and nature.
"We strongly support the comment by the review panel that a ‘community-led strategic planning process (e.g. at renewable energy zone level) would play an important role strengthening coordination, reducing the individual burden on developers, and enabling a streamlined framework for project development that drives positive social outcomes.’ But what we need to see now is ownership on who is obligated to deliver this.
"We stand ready to work with governments at all levels to ensure that the market settings underpinning the NEM continue to deliver for the shift to renewable energy and for local communities."