The ISP runs to hundreds of pages and helps guide energy decisions across the country, yet few people read it. We chatted with climate and energy specialist Franzika Curran to break down its importance.
The Australian Energy Market Operator’s Integrated System Plan, usually shortened to the “ISP”, is not the kind of document most people would pick up for a casual read. It is a large technical report full of modelling, forecasts and system planning – and it quietly shapes decisions that play out across the country.
To help unpack what it is and why it matters, we caught up with climate and energy specialist Franziska Curran, who helped contribute to our recent ISP submission and who has spent time sifting through the hundreds of pages of the draft plan.
Franziska, for people who have never heard of it – what is the Integrated System Plan?
At its core, the ISP is a very large piece of analysis that asks a fairly simple question: what is the lowest cost way for Australia to meet its future energy needs while also meeting government policy goals?
To answer that question, the Australian Energy Market Operator draws on years of data, modelling and consultation. It considers how demand might change, what kinds of energy generation are likely to be built, how much transmission will be needed, and how all of that fits together as coal power stations retire and new energy sources come online.
The result is a long-term plan that outlines what the electricity system could look like over the next two decades, and what infrastructure would likely be needed to support it.
It does not directly approve or build projects. Instead, it acts more like a map. It shows the pathway that planners, investors and governments are expected to follow when making decisions about new infrastructure.
If it is a technical planning document, how does it shape what happens in real places?
A successful energy transition requires a significant amount of new infrastructure. That includes new generation such as wind and solar, as well as the transmission lines that move electricity across the system.
AEMO has a responsibility to plan for the transmission network needed to support that system and the ISP helps fulfil that role.
By setting out the direction the system is expected to take, the plan sends signals to investors, network companies and planners about where new infrastructure will likely be required. Those signals then flow through into more detailed planning and investment decisions.
Over time, those decisions shape what gets built and where.
What changes when a project is labelled “actionable”?
Within the ISP, some transmission projects are labelled as “actionable”.
That label matters as transmission projects cannot progress through the regulatory approvals process unless they are identified as actionable within the plan. In that sense, the ISP acts as a gatekeeper.
Once a project receives that designation, the project proponent can move into the next stages of regulatory approval and planning. Future versions of the ISP then continue to check that those projects still align with what the electricity system needs.
Why do regional areas tend to host so much of this infrastructure?
Much of the renewable energy Australia needs will be built in regional areas, and this is for a number of reasons.
One reason is the quality of renewable resources. Wind and solar generation tends to be strongest in specific geographic areas. Building projects in places with strong resources allows the system to generate more energy more efficiently.
Another factor is scale. Large renewable energy projects require significant land and are often built in clusters that make the most of existing or planned transmission infrastructure.
Concentrating development in areas with strong renewable resources and suitable space can make better use of the network that connects them. If large projects were spread thinly across the entire country, significantly more transmission infrastructure would be needed to connect them all.
What tends to determine whether this development benefits a community?
For me, one of the most important factors is supporting local leadership.
Where communities are actively planning for the future they want and organising around that vision, they are often better placed to shape the opportunities that come with new infrastructure.
That kind of leadership can help ensure projects align with local development goals and that benefits are captured locally.
That is also why I think the work of The Next Economy is so important. Taking the time to understand what communities want – and do not want – in their future, making sure people have access to clear information about what is coming and how decisions are made, and helping communities articulate their priorities. This is so important in ensuring development supports local aspirations rather than working against them.
What is often misunderstood about the ISP?
For many people, the ISP can feel quite distant or abstract. It is a large technical document, and it can be easy to dismiss it or criticise it without looking closely at what sits behind it.
But the plan represents years of analysis, modelling and consultation. It attempts to map out a pathway for a very complex transition, bringing together data about energy demand, infrastructure, technology and policy.
It may not always make for easy reading, but it is a significant piece of work that plays an important role in shaping how the electricity system evolves over time.
The final AEMO ISP 2026 is expected to be released in June this year.