Feedback sought on improving incentives for long-duration firming

More renewable generation is helping to reduce the risk of electricity shortages when hydro lake levels are low.

But we still need to ensure there is enough reliable generation that can step in when there isn’t enough rain, wind or sun.

As we use more renewables, these back-up sources will run less often, making investment in them more challenging.

We want to understand whether changes to electricity market rules could help support investment in reliable long-duration back-up supply (long-duration firming).

We have released an issues and options paper Improving incentives for long-duration firming to seek feedback on this issue.

The paper puts forward five options to improve transparency, contracting and investment signals. All of the options could work independently or alongside measures being considered by industry and the Government.

Feedback closes on 13 November 2026.

We expect to decide on which, if any, of these measures to advance early next year.

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