The Australian Energy Market Commission and AER have launched inquiries into whether electricity distributors should be allowed to own and operate EV charging infrastructure. The parallel investigations pit network operators against independent providers like Evie Networks. Independent providers warn allowing networks to rate-base EV chargers would stifle competition and create an unlevel playing field. This regulatory flashpoint over market structure comes as new players seek to enter the NEM, shaping the competitive landscape for years.
Meanwhile, the ACCC has approved Swiss commodity giant Vitol’s acquisition of Zen Energy’s retail business and power purchase agreement portfolio. Vitol's entry introduces a major global player to compete against Australia’s dominant 'Big Three' energy retailers. The move signals growing international interest in the Australian market's volatility and transition opportunities. It follows a pattern of large trading houses establishing a direct presence in the NEM.
The physical realities of that transition were starkly illustrated in South Australia. The state just experienced its worst wind drought in seven years, forcing short-duration batteries offline and leaving gas generation to fill the supply gap. This prolonged period of low wind output underscores the urgent need for long-duration storage. NEM spot prices fell 16.7 per cent this week to average $123.96/MWh, as milder conditions returned following recent volatility.
Policy uncertainty continues to cloud the investment outlook for large-scale renewables needed to prevent such events. In New South Wales, local councils in the New England region report they were not consulted on the state Coalition's proposal to radically restructure the Renewable Energy Zone. Leaders expressed concern the LNP plan could “evaporate” anticipated regional economic benefits. A new report also claims Australia’s flagship climate policy is “failing miserably” to cut actual emissions due to an over-reliance on carbon offsets.
Commercial headwinds are also emerging. Renewabl CEO JP Cerda reports a 10% decline in corporate PPA volumes for 2025, attributing the slowdown to buyer hesitation over pending GHG Protocol Scope 2 accounting rules. A potential shift to hourly emissions matching is increasing the strategic value of co-located battery storage for corporate buyers seeking to make credible clean energy claims.
Globally, markets are accelerating their deployment of storage to manage grid challenges. The UK energy regulator Ofgem shortlisted 16 long-duration storage projects totalling 7.6GW for its first cap-and-floor support scheme. In Argentina, an inaugural battery tender attracted bids as low as $7,397 per MW-month, signalling intense competition. These international developments provide a benchmark for Australia as it grapples with its own storage and firming requirements.
Regulatory work continues on multiple fronts to adapt market frameworks. AEMO is consulting on new FCAS registration guides for batteries and renewables, and on a new network access model. Submissions for both are due in late July, shaping the rules for how new assets will participate in the evolving grid.