The Australian Energy Market Operator (AEMO) has released the Draft 2026 Integrated System Plan (ISP) for consultation, setting out what it describes as the least-cost roadmap to deliver secure and reliable electricity across the National Electricity Market to 2050.
Developed under the National Electricity Rules, the Draft ISP outlines the generation, storage and transmission infrastructure required as Australia’s remaining coal-fired power stations become less reliable and progressively withdraw. The final 2026 ISP is due to be published in June next year.
The plan follows 18 months of engagement, incorporating input from more than 1,400 stakeholders and 240 written submissions. AEMO said the process balanced consumer needs, industry investment and government policy.
AEMO chief executive officer Daniel Westerman said the roadmap was consistent with previous reports and reflected investments already underway.
“Extensive stakeholder consultation and modelling of thousands of potential investment combinations has identified the least-cost option,” Mr Westerman said.
“Renewable energy, firmed with storage, backed up by gas and connected with upgraded networks remains the least-cost roadmap to meet Australia’s energy needs. This aligns with consumer, industry and government investments already underway,” he said.
Electricity consumption is forecast to nearly double by 2050, driven by electrification of transport, data centre expansion and industry shifting from gas to electricity. At the same time, around two-thirds of the remaining coal fleet is expected to close by 2035, in many cases earlier than publicly announced, with all coal-fired generation retiring by 2049.
Under the Draft ISP’s optimal development path, the National Electricity Market would require 120 gigawatts of grid-scale wind and solar, 32 gigawatts of grid-scale batteries, 14 gigawatts of flexible gas and 12 gigawatts of pumped hydro by 2050. Around 6,000 kilometres of new transmission lines would be added to the existing 44,000 kilometre network.
The annualised total capital cost of grid-scale generation, storage, transmission and distribution is estimated at $128 billion in today’s dollars. Transmission investments of around $9 billion are expected to repay their costs, save consumers $22 billion in avoided costs and deliver emissions reductions valued at $2 billion.
Consumers are also expected to play an increasing role, with projected investment by 2050 in 87 gigawatts of small-scale solar, 27 gigawatts of behind-the-meter batteries and 9 gigawatts of storage from electric vehicles.
“Australian consumers are world leaders in rooftop solar and are now adding home batteries and electric vehicles,” Mr Westerman said.
A not-for-profit working with regional communities, the Renewable Energy Alliance, welcomed the release of the draft plan. National director Andrew Bray said the ISP provided the most comprehensive pathway to energy security by 2050.
“It may sound like a lot of acronyms, but AEMO’s ISP is as close as we’ve got to a national roadmap for how we’re going to keep the lights on as Australia’s ageing coal fired power stations retire,” Mr Bray said.
Mr Bray said the plan highlighted the need for large-scale renewable projects, new transmission infrastructure and stronger community engagement, particularly in rural and regional areas.
AEMO’s Draft 2026 ISP is open for consultation until 13 February 2026 and will be finalised by June 2026.
Read all the way through to the end of the story? So did lots of other people. Advertise with New England Times to reach New England locals who are interested and engaged. Find out more here.