A coalition of energy bodies including the Energy Efficiency Council and Energy Consumers Australia is urging the federal government to create a CEFC-backed pilot lending program to spur electrification in mid-tier commercial buildings. The proposal, which also calls for accelerated depreciation for gas equipment, signals a growing policy focus on decarbonising the built environment, one of the trickier parts of the net-zero puzzle. This push to incentivise change in commercial properties comes as regulators work to formalise rules across the energy system, from individual households to the wholesale market.
At the grid edge, the federal government is establishing a national technical code for consumer energy resources. The framework will require suppliers to register assets like solar inverters and batteries, while mandating a federal accreditation scheme for installers to lift safety and performance standards. This formalisation of the DER sector is mirrored at the wholesale level, where Australian energy ministers have fast-tracked a consultation process to redesign the NEM, aiming for a final agreement on new market structures by late 2025. The accelerated timeline reflects deep concerns that current market signals are failing to deliver investment at the required pace.
Nowhere is this concern more apparent than in the debate over the Capacity Investment Scheme. Policymakers aim to legislate three new model electricity contracts by the end of March to replace the struggling CIS and accelerate investment in clean dispatchable capacity. The move follows feedback that the current scheme is not fundamentally altering investment strategies, a view echoed by Eku Energy. The firm’s CTO stated the CIS has not changed its core approach, highlighting the challenge for any mechanism aiming to de-risk 32 GW of new capacity. The pressure for effective policy is mounting, with the Climate Change Authority recommending Australia cease all coal-fired power generation by 2035.
Meanwhile, commercial pressures are building within the supply chain. Sungrow will raise inverter and storage prices by up to 15 per cent from 20 September, citing escalating raw material and component costs. This move injects a dose of cost inflation into the solar and storage sectors, even as wholesale electricity prices remain subdued. NEM spot prices averaged $47.27/MWh over the past week, a minor 3.9 per cent drop as mild conditions and a 50.3 per cent renewable share suppressed volatility. The grid itself has been relatively stable, though WattClarity analysis continues to examine the impacts of the Loy Yang A1 unit trip last week.
Amid these policy and market shifts, the long-term project pipeline continues to evolve with novel technologies. Line Hydrogen has proposed a $1.5 billion project in Tasmania's Bell Bay to manufacture 3D-printable floating wind turbines. The project aims to supply renewable energy for producing low-emissions fuels, showcasing an ambitious integration of advanced manufacturing and green hydrogen ambitions within a key industrial hub.
Australia’s policy debates are unfolding against a backdrop of accelerating global deployment. New analysis shows India added 8.2 GWh of battery energy storage in the first half of 2026, a figure that dwarfs its previous installations and signals a major ramp-up. In Europe, Abu Dhabi's Masdar has formed a €5 billion partnership with Luxcara to develop BESS and wind projects in Germany. These developments underscore the scale of international capital flowing into storage, setting a high bar for Australia's own investment schemes. Closer to home, AEMO is seeking feedback on its Market Visibility Framework, with submissions due 13 October.