Driving the energy transition—navigating the complexity of AEMC’s new market changes for smarter, cheaper, cleaner energy

Published: Energy Source & Distribution Magazine – February 2025

Australians are driving one of the fastest transformations in electricity systems globally, fuelled by record investments in Consumer Energy Resources (CER).

To support this consumer led change, the Australian energy market is set to undergo significant changes in 2025, as new rules and technologies reshape how energy is generated, traded, and consumed.

One of the most significant updates is the Australian Energy Market Commission’s (AEMC) “Unlocking CER Benefits Through Flexible Trading” rule which is an important step toward a more decentralised and consumer-focused energy market.

By allowing flexible trading, the AEMC is helping to create a stronger and more sustainable energy system where consumers, businesses, and networks can all take an active role in managing energy and stabilising the grid.

Finalised in August 2024, this change aims to bring consumer energy resources—like rooftop solar and battery storage—into the energy market in a way that benefits both the grid and individual consumers.

According to the AEMC, Australian households and businesses are embracing CER at a growing rate. More than three million households and businesses in Australia have solar panels and every second household is expected to have them by 2040. More than 50,000 small-scale battery systems have been installed in the past seven years, and 22 million purchases of electric vehicles are expected to be made by 2050.

This initiative aims to integrate CER into the National Electricity Market (NEM), improving reliability, reducing emissions, and lowering costs. For the retailers, adopting these changes will allow them to offer a broader variety of energy products and higher value solutions. To unlock these benefits, utilities will need to first adjust their systems and processes to meet new standards and expectations.

This regulator led market changes can be a distraction for customer focussed retailers, if they are not delivered with time and budget certainty and in a way that acknowledges ongoing technology costs as a driver to cost-to-serve.

At Gentrack, we’re focused on helping utilities adapt to these shifts with tools that make it easier to stay compliant and efficient.

Read the full article here.