Submission: Good governance for an evolving electricity system – NEM Review
23 September 2025
Investors support the dual intentions of the NEM Review, which is to propose solutions to challenges that hinder investment in the National Electricity Market (NEM), and to deliver electricity system services more efficiently.
Market settings have been designed around fossil fuel generation, which do not appropriately support grid security, efficiency or new investment in the types of variable and decentralised services that are now required.
nvestors remain concerned that the transition task has been pursued in a fragmented and often incoherent way across decision-making bodies, which discourages investment. Investors are also concerned that the demand signal generated by the CIS will cease during this critical coal phaseout period, and without a strong signal to replace it – such as a carbon price for the electricity sector – investment will stall. Investors do not anticipate that the ESEM will generate a strong enough demand signal to overcome transition risks.
IGCC highlights two priorities:
- Differing needs in the transition between the pre-coal phaseout and post-coal phaseout require a more “hands-on” approach.
- More coordinated, transparent governance of decision-making within the NEM is essential in delivering investment-critical information to market.
Read the full submission.