Energy Networks Australia (ENA) has welcomed the release of the Energy Security Board’s (ESB) Post 2025 Market Design Options Paper.

ENA chief executive officer Andrew Dillon says the report sought to guide a new architecture for the energy system to bring it into a renewables-ready future in the short, medium and long term.

“The ESB has recognised the critical roles transmission and distribution networks play in the transition to a grid that supports more large scale renewable generation and customers’ increasing adoption of rooftop solar, batteries and smart appliances,” he says.

“Distribution networks are coping with increasing two-way flows on their system and will continue to play a more dynamic role to optimise local grids. New transmission is sorely needed to allow for the timely and stable delivery of renewable power.

“The current arrangements for transmission are clearly not delivering and we particularly welcome the consideration of a more appropriate cost-benefit test that can work for customers.”

He adds that while the transition was posing immediate challenges that must be addressed, it’s important not to act recklessly: “We need to be mindful that the challenges posed by the transition to renewables risk posing additional costs to customers. It is important we don’t over-engineer a one-size fits all system design, but instead adopt a balanced approach that unlocks the opportunities from the energy transition and supports investment as it is needed.”

He also commends Dr Kerry Schott for her stewardship of the ESB and the Post 2025 project: “Kerry and her team have done a tremendous job consulting with energy stakeholders. We will consider the report in detail and work with the ESB and policymakers to shape a positive energy future for Australia.”