The Australian Energy Market Commission (AEMC) has put forward a new proposal to improve how electricity distribution networks are planned and managed across the country. The main aim of this move is to support the growing use of local energy systems such as rooftop solar panels, home batteries, and electric vehicles.

In recent years, more households in Australia have started generating and storing their own electricity. This shift has changed the traditional flow of power, which earlier moved only from large power plants to homes. Now, electricity can flow in multiple directions, creating pressure on older grid systems that were not designed for this kind of usage. The AEMC’s proposal focuses on addressing these challenges by introducing smarter planning and better use of data.

A key feature of the proposal is the introduction of a new system called the “distribution network development plan.” This plan encourages electricity network providers to take a more forward-looking approach. By using improved tools and data, companies can better understand what is happening at the local level, especially in low-voltage networks that serve residential areas. This will help them identify where solar panels, batteries, and EVs are being used the most and plan accordingly.

Better visibility of the grid is expected to bring clear benefits to consumers. One major issue it can help reduce is solar curtailment, which happens when excess solar power cannot be fed into the grid due to capacity limits. With improved planning, more of this clean energy can be used instead of being wasted. The proposal also supports the use of non-network solutions, such as community batteries, which can store extra power and reduce the need for expensive infrastructure upgrades.

Another important part of the proposal is the introduction of standard reporting rules. These rules will ensure that data is consistent across all regions, making it easier for businesses and investors to identify suitable locations for new energy projects like EV charging stations. This can help speed up the development of modern energy infrastructure.

Since network costs make up a large part of electricity bills, improving efficiency in planning and operations can help reduce costs over time. The AEMC believes that a smarter, data-driven grid will support the transition to cleaner energy while keeping the system reliable and affordable.

The commission is currently inviting feedback from the public and industry stakeholders, with submissions open until June 2026. A final decision is expected after reviewing all responses.