AUSTRALIA Law and Practice Contributed by: Alexander Danne, Roy Groom, Rohit Venkat and Georgia Summerhill, Clayton Utz
Renewable energy sources now comprise a substan- tial and growing portion of supply. Solar generation (combining rooftop and utility-scale installations) con- tributed approximately 21.7% of NEM output in 2025, while wind generation accounted for around 15.7%. Hydroelectric generation, predominantly from Tas- mania and the Snowy Mountains scheme, supplied approximately 5.3%. Gas-powered generation con- tributed around 6.6%, operating primarily in a peaking and firming capacity. Grid-scale battery storage is expanding rapidly and playing an increasingly important role in energy shift- ing and system services. Notable operational projects include the Hornsdale Power Reserve in South Aus- tralia, the Victorian Big Battery and the Waratah Super Battery in New South Wales with the latter represent- ing one of the largest battery installations globally upon full commissioning. In Western Australia, the generation mix remains gas- dominated given the SWIS’s reliance on extensive gas infrastructure in the Perth Basin and from the North West Shelf. However, wind and solar capacity is grow- ing steadily within the WEM, supported by the state’s renewable energy targets. The NEM’s coal fleet faces a series of scheduled retire- ments that will further accelerate the supply mix tran- sition. Liddell Power Station in NSW closed in 2023. Eraring, originally slated for closure in 2025, has been deferred to 2027. Yallourn in Victoria is expected to retire by 2028, and Bayswater in NSW by 2033. These closures will progressively remove significant base- load capacity, requiring replacement by a combination There are no specific market concentration limits prescribed in electricity-specific legislation in Aus- tralia. Instead, the general competition law framework applies to constrain market concentration across the power industry. The Competition and Consumer Act 2010 (Cth) pro- vides the principal controls, through Section 50 and Part IVA (which prohibit acquisitions that would have the effect, or likely effect, of substantially lessening of renewables, storage and gas firming. 2.4 Market Concentration Limits
competition) and Section 46 (which prohibits the mis- use of market power). The ACCC’s mandatory merg- er approval regime, described in 1.4 Sale of Power Industry Assets , operates in practice as a constraint on growing market concentration through acquisition, with the ACCC assessing competitive effects in rel- evant electricity markets before approving transac- tions. The ACCC actively monitors electricity markets, pub- lishing annual Electricity Market Monitoring reports that examine pricing conduct, market structure and competitive dynamics. Where concerns are identi- fied, the ACCC may investigate and take enforcement action. The AER performs a complementary monitoring role under the NER, with authority to investigate genera- tor rebidding conduct. The NER provisions (relevantly, clause 3.8.22A) prohibit false and misleading offers, and the AER may issue infringement notices, accept enforceable undertakings or seek civil penalties for breaches. The AEMC has on several occasions considered whether specific market power rules should be intro- duced for the NEM, including pivotal supplier tests that would identify generators with the ability to set prices unilaterally during periods of tight supply. How- ever, these proposals have not been formally adopted. At state level, some jurisdictions imposed generation ownership caps as a condition of privatisation. In Vic- toria, for example, capacity caps were applied to pur- chasers of the Loy Yang assets during the 1990s pri- vatisation process, though these have since expired. 2.5 Surveillance to Detect Anti-Competitive Behaviour Australia maintains a competitive wholesale electricity market, overseen by multiple agencies with surveil- lance and enforcement functions. Principal Laws The Competition and Consumer Act 2010 (Cth) (CCA) provides the principal prohibitions on anti-competitive behaviour, including:
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