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Australia’s largest energy market is undergoing the most significant transformations since its conception. Rapid renewable uptake, growing system volatility, and shifting policy settings are forcing a fundamental rethink of how the National Electricity Market (NEM) operates. But with so many moving parts, one question sits at the centre of the transition: how do we build a market that remains reliable, affordable, and investable while decarbonising at speed?

In this episode of Transmission, Tim Nelson joins Wendel to unpack the pressures reshaping Australia’s power system and what must change to keep pace. Over the conversation, they explore the market design challenges emerging across the NEM, from capacity mechanisms and reliability gaps to consumer expectations, policy uncertainty, and the economics of retiring coal. Tim explains why today’s market structures weren’t built for a high-renewables grid, how the investment environment is shifting, and what practical reforms could stabilise the system while enabling large-scale clean energy deployment.

Key points covered:

• Why the NEM’s current market design is struggling under the pace of the energy transition.

• How retirement timelines for coal generation are reshaping reliability and investment signals.

• What Australia needs from a capacity mechanism and what risks must be avoided.

• How policy uncertainty and consumer expectations are influencing market behaviour.

• What reforms could build a more stable, predictable, and investable market for renewables and storage.

About our guest:

Tim Nelson is a leading energy economist and policy expert with extensive experience across market design, system reform, and the evolution of Australia’s National Electricity Market.

With experience at Iberdrola Australia, the AEMC, AGL and Griffith University Tim brings a wealth of knowledge to his current positions including his role as Chair of the independent review of Australia's NEM. Find Tim on LinkedIn here - https://www.linkedin.com/in/timnelsonaustralia/

About Modo Energy:

Check out the Energy Academy Australia here: https://www.youtube.com/watch?v=6Q-kwsfBPyc&list=PL_lhNBgOJnjTuKzdbLzQirHILoHYjaHYN

Modo Energy helps the owners, operators, builders, and financiers of battery energy storage understand the market — and make the most out of their assets.

All episodes of Transmission are available to watch or listen to on the Modo Energy site. To stay up to date with our analysis, research, data visualisations, live events, and conversations, follow us on LinkedIn. Explore The Energy Academy, our bite-sized video series explaining how power markets work.

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