2026 ISP Delivers A More Wholistic Plan But Also Lays Out The Huge Challenges Ahead Of Us
Emily Wood | June 25, 2026
The latest Integrated System Plan (ISP), the blueprint for the least-cost path for our future electricity system from Australian Energy Market Operator (AEMO), shows a far more wholistic, whole of system path forward, yet it also highlights the huge challenges that lay ahead, said leading advocate for large commercial and industrial energy users, the Energy Users’ Association of Australia (EUAA).
“We congratulate AEMO on the latest ISP that shows a clear evolution of their model and a far more wholistic, whole of system approach,” said EUAA Chief Executive Officer, Mr Andrew Richards.
“It is pleasing to see that community energy resources (CER) and batteries are having a positive impact and we look forward to an increasing focus on orchestration of these assets to deliver even more benefits to consumers, including reducing the need for some large transmission projects.”
The plan also highlights the major challenges in achieving a low emissions energy system that is affordable, reliable and sustainable. While the ISP shows that we are generally on track to deliver an 82% renewable energy system, this relies on every single thing going right along the way, which is far from guaranteed.
“We have only solved the easy parts thus far. The hard parts – when the wind and sun is not generating electricity and not charging batteries – have not been solved and remain the biggest challenges requiring huge collaboration to get this right so we can deliver a reliable, sustainable and, importantly, affordable energy system for all consumers,” added Mr Richards.
“17GW of new gas generators is still required in this plan and the path to delivering these critical, flexible generators that will ‘fill in the long-duration blanks’ is less clear. This is just one of the many critical aspects that need some focus if we are to get of our new electricity system right.”
“It is important to note, while the ISP is a least-cost path forward, all paths deliver energy that is more expensive than what we have become accustomed to from our incumbent system that is nearing the end of its life. No matter what path we choose, significant new capital must be deployed which will always put upwards pressure on energy bills in the near-term.”
The Energy Users’ Association of Australia (EUAA) is the peak body representing Australian commercial and industrial energy users. Our members are the engine room of the Australian economy, producing many of the products that households and business use every day including bricks, glass, steel, aluminium, paper, food and beverages. Combined our members employ over 1 million Australians, pay billions in energy bills every year and in many cases are exposed to the fluctuations and challenges of international trade.
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Media Contact: Emily Wood 0421 042 121