Consultation on the ISP Methodology

The Integrated System Plan (ISP) is a whole-of-system plan that provides an integrated roadmap for the efficient development of the National Electricity Market (NEM) over the next 20 years and beyond. This consultation relates to the methodologies that AEMO proposes to use in the 2022 ISP. 

Final ISP Methodology 

On 30 July, AEMO published the final ISP Methodology. The methodology sets out how AEMO will undertake: 

• Modelling – the proposed methodologies used to determine potential development paths (i.e. sequences of projects) in the ISP.
• Cost benefit analysis (CBA) – the approach used to develop and test alternative development paths and determine an optimal development path (ODP).

Consultation process 

The National Electricity Rules require AEMO to develop, consult and publish the ISP Methodology in accordance with the Australian Energy Regulator’s (AER’s) Forecasting Best Practice Guidelines.

In developing the ISP Methodology, AEMO sought stakeholder input and feedback through workshops as well as written submissions. The below figure provides further detail on the key dates of this formal consultation.

ISP Methodology Issues Paper

On 1 February AEMO prepared an Issues Paper that provides:

• An overview of existing methodologies.
• Areas where AEMO is looking to enhance existing methodologies or introduce new methodologies.

AEMO received feedback from 22 stakeholders. A webinar was held on 1 April that provided an overview of the modelling methodologies being proposed to be used in the ISP, as well as to seek feedback on AEMO’s reflections on the Methodology Issues Paper submissions.