The 2024 Cost Benefit Analysis Guidelines issued by the Australian Energy Regulator provide a standardized methodology for evaluating electricity network investments under the Regulatory Investment Test for Transmission and Distribution. The guidelines require project proponents and the Australian Energy Market Operator to assess credible project options using a transparent net present value framework that compares system costs and benefits over time. Key benefits assessed include changes in generation costs, transmission losses, reliability, market competition, and emissions reduction impacts. The methodology emphasizes scenario analysis, consistent assumptions, and robust treatment of uncertainty. It also requires clear documentation of modelling inputs, cost estimates, and stakeholder engagement processes. The guidelines strengthen transparency and comparability in energy infrastructure planning, ensuring that proposed investments deliver the greatest long-term benefit to electricity consumers while supporting reliability, decarbonisation, and efficient operation of the national electricity market.
