Energy and Climate Change Ministerial Council

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How the Orderly Exit Management Framework will work - text alternative

Diagram showing how the OEM Framework will work.

The infographic shows the different steps in the OEMF process, and the key decisions made by the Minister.

The process begins when a retiring coal or gas-fired generator brings forward its planned closure date as part of the renewable energy transition.

The next step is to consider if the closure could result in temporary energy shortfalls during periods of higher than usual demand.

If the Energy Minister decides, the Minister can trigger the next step of requesting an independent and transparent assessment to determine:

  1. The size and extent of the shortfall.
  2. The options available to fill the shortfall.
  3. Consumer benefits

The next step is that the Minister will then decide between several options.

Option 1: If the temporary shortfall can be managed without additional capacity, then the power station is permanently closed.

Option 2: If there is an available solution to fill the temporary shortfall at the lowest possible cost to consumers, then the power station is permanently closed.

The next two actions are available to the Minister if there is no available solution.

Option 3: The Government enters voluntary negotiations with the generator to adjust its closing date to fill the temporary energy shortfall. If an agreement is reached, the generator will operate under the agreement and then be permanently closed.

Option 4: If no voluntary agreement is reached, as a last resort, the Minister can mandate the temporary extension of the closing date of a retiring coal or gas-fired generator to ensure reliable supply and keep the lights on. Once the shortfall is filled, the power station is closed permanently. 

Separately, but throughout the process, the Government continues to accelerate investment in renewables to reach net zero emissions.

The Infographic also shows that consumers directly benefitting will fund the solutions.