ES | Australia consults on NEM storage‑market draft rules

PVTIME – Australia has launched a public consultation on draft legislative amendments to its National Electricity Market (NEM). These amendments are designed to advance the implementation of the Electricity Services Entry Mechanism (ESEM) and the Market-Making Obligation. The regulatory package aims to reinforce the institutional frameworks governing the participation of battery storage within the national wholesale electricity market.

Led by the Department of Climate Change, Energy, the Environment and Water, the consultation follows endorsement from the Energy and Climate Change Ministerial Council. Stakeholder submissions will be accepted until 13 October 2026 AEDT. Once the consultation period has closed, the revised proposals will be returned to the ministers for consideration in December 2026. The legislation is expected to be introduced to the South Australian Parliament in the first half of 2027. The new rules are expected to deliver clearer market access for large-scale storage assets amid Australia’s accelerating energy transition.

Industry participants have noted that the ESEM and the market-making obligation are central reforms intended to boost NEM liquidity and create more predictable operating conditions for storage operators competing in spot-market activities.

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