The NSW Government has been leading the detailed design of the OEM Framework, which will act as a support for the energy transition, with support from energy market bodies and other National Electricity Market jurisdictions.
The Orderly Exit Management (OEM) Framework is designed to ensure consumers have access to stable, reliable and affordable energy as state and Commonwealth governments accelerate the transition to renewable energy. The Framework will only apply in jurisdictions where the relevant state government voluntarily opts into it.
New South Wales and the Commonwealth are accelerating investment in renewable energy to replace the capacity of aging and increasingly unreliable coal-fired power stations.
The OEM provides all state governments with an additional mechanism to manage the risk of early closures in terms of energy reliability and affordability.
If implemented, the Framework provides a clear process for governments to manage situations where the owners of a coal-fired power station seek to bring forward their retirement date. The Framework involves an assessment of the impacts of the withdrawal on the reliability and security of the electricity system and, if an adverse impact is identified, consideration of alternative measures to close the gap.
If necessary, it also allows a government to temporarily extend power plant operation while new renewable infrastructure is brought online, through a voluntary agreement or directive. The power plant will then be permanently closed.
The Energy and Climate Change Ministerial Council is seeking feedback on the proposed OEM Framework through a consultation document. The feedback will help inform the final design of the OEM Framework, including the detailed legislative and commercial instruments that are necessary to implement the Framework.
This consultation period will be open until Friday, February 2, 2024.
Those who wish to give their opinion can visit Consultation document on the orderly exit management framework โ December 2023
Quote attributable to New South Wales Minister for Energy and Climate Change, Penny Sharpe:
โThe Orderly Exit Management Framework is about how we can ensure reliability at the lowest possible cost as we transition our energy system to renewable energy.
"The New South Wales Government is committed to adding as much renewable energy to our grid as quickly as possible to meet our emissions reduction targets and provide a reliable supply of clean, affordable electricity to New South Wales homes and businesses. South Wales.
"We do not want coal-fired power plants to be open even a minute longer than necessary. This framework provides a backstop for the energy transition, which will be used only as a last resort when we do not have enough time to secure new renewables or storage in the system".
