National Energy Market (NEM)

The National Energy Market (NEM) is an interconnected electricity system that supplies power to most of eastern and southeastern Australia. It operates like a shared marketplace where electricity generators sell power to retailers, who then deliver it to homes and businesses. Managed by the Australian Energy Market Operator (AEMO), the NEM ensures electricity supply is reliable and prices are responsive to supply and demand. It promotes competition, efficiency, and the integration of renewable energy sources across participating states, creating a unified framework for managing Australia's electricity grid.