This report explains the role of the Australian Energy Market Operator (AEMO) in the planning of electricity and gas transmission networks in the states of Queensland, New South Wales, Victoria, Tasmania, South Australia and the Australian Capital Territory.

The report aims to provide a better understanding of how AEMO exercises its planning powers and the lessons that its operations may provide for planning and management of the national freight transport network.

The paper:

• explains the governance and regulatory environment in the broader energy market
• describes the evolution of AEMO's planning functions
• describes AEMOs approach to electricity and gas network planning
• includes broad observations on the nature and development of AEMO's planning functions.