AEMO’s Draft 2026 Integrated System Plan Brings Social Licence Into National Energy Planning

Australia’s national energy planner, Australian Energy Market Operator (AEMO), has released its Draft 2026 Integrated System Plan (ISP), setting out the next major blueprint for how the National Electricity Market will evolve through the energy transition.

While the ISP is primarily a technical planning document, one aspect stands out for those working in and around community engagement: the explicit recognition of social licence as a factor in system planning.

Social Licence Recognised as a System-Level Issue

In the Draft 2026 ISP, AEMO states that “social licence — the ongoing acceptance and trust of communities — is essential to the success of the energy transition.”

This framing marks a shift in how community acceptance is positioned. Rather than being treated solely as a project-level concern, social licence is acknowledged as something that can influence delivery risk, timing and feasibility across the system as a whole.

For a national planner whose remit is traditionally technical and economic, this is a notable development.

Why This Matters for Energy Infrastructure Delivery

The Draft ISP reinforces that Australia’s energy transition depends on significant new transmission, generation and storage infrastructure. Experience to date has shown that technical approval alone does not guarantee delivery.

Community opposition, lack of trust and poorly managed engagement have contributed to delays and uncertainty in multiple jurisdictions. By referencing social licence within system planning, AEMO is acknowledging that community response can affect whether planned infrastructure is delivered on schedule — or at all.

Engagement Reflected in the Planning Process

AEMO also highlights that the ISP itself is developed through extensive consultation, with opportunities for input from communities, consumer groups, industry and governments.

While AEMO does not conduct project-level engagement, the Draft ISP positions engagement as part of the broader planning context — reinforcing that stakeholder and community perspectives are relevant to long-term system outcomes, not just individual projects.

A Clear Signal for the Energy Sector

The inclusion of social licence in the Draft 2026 ISP does not introduce new engagement requirements. However, it sends a clear signal to governments, regulators, developers and delivery agencies: community acceptance is now recognised as a system risk, not a peripheral issue.

For engagement practitioners working in the energy sector, this reflects a broader shift in how engagement is understood — from a downstream activity to a factor that influences national planning assumptions and delivery pathways.

What Happens Next

AEMO is consulting on the Draft 2026 ISP, with submissions invited before the plan is finalised. The final ISP will shape infrastructure investment and coordination decisions for years to come.

As Australia accelerates its energy transition, the Draft ISP suggests that technical planning and community acceptance are becoming more closely linked — a reality that will continue to shape how energy projects are planned, communicated and delivered.

Sources:

• Australian Energy Market Operator — Draft 2026 Integrated System Plan

• Australian Energy Market Operator — Draft 2026 ISP: Social Licence Appendix

• Australian Energy Market Operator — Draft 2026 ISP Consultation and Engagement Process