Sector experts invited to co-design contracts for Australia’s new Electricity Services Entry Mechanism

4 March 2026

Australia’s energy sector marks a major milestone today as experts from across the sector are invited to collaborate on the design of standardised electricity contracts for use in the first Electricity Services Entry Mechanism (ESEM) tender, anticipated to occur in late 2027, pending ECMC approval.

The Australian Government Department of Climate Change, Energy, the Environment and Water (DCCEEW), ASL, and the AER are calling for nominations to join the initial industry led contracts co-design Working Group.

The group will bring together around 10 specialists from different parts of the energy and financial markets ecosystem to help shape how these contracts should look and work in practice. Applications are open until Friday 20th March, 6pm AEDT, with experts from across the market, including from developers, electricity wholesale traders/financial intermediaries, retailers, demand-side and large consumers, encouraged to apply.

The Working Group will meet over several months from early April 2026, taking part in workshops, technical analysis and broader consultation. The Working Group will be led by an independent facilitator and supported by a Convening Group comprised of representatives from the Commonwealth DCCEEW, ASL, and in an observing capacity, the AER. The Convening Group will oversee the Working Group's operations and provide administrative and resourcing support.

The call for nominations follows the Energy and Climate Change Ministerial Council’s commissioning of the National Electricity Market Wholesale Market Settings Review (the NEM Review), which looked at how the electricity market can support Australia’s shift to renewable energy while keeping power reliable and affordable.

The Review recommended that industry should play a central role in designing the new contracts, following the success of a pilot co design process completed during the NEM Review.

More information, including the Guidelines for the initial contract co-design process and application form can be found on the ASL website.

Quotes attributable to Nevenka Codevelle, CEO, ASL

“ASL is pleased to be supporting the Australian Government and industry Working Group to develop these contracts and shape what the future of investment in Australia’s electricity market could look like.”

“Industry expertise is essential to developing the right contracts. Nominations are being sought from people across all market segments, including developers, retailers, traders, and demand-side participants”

“The success of the NEM Review co-design pilot showed the importance of bringing industry together. ASL, along with the Australian Government, the AER and industry experts will be building on that approach to develop the initial ESEM contracts.”

 

 

For more information

ASL Media I M 0403 706 438 I E [email protected]