An expert tasked with overhauling how the electricity system operates says government subsidies for new power generation should be temporary fixes that give way to a market-led solution that will come from a targeted overhaul of the rules.

The future National Electricity Market should ensure incentives exist to encourage generators to invest in new gas power plants as well as battery storage and pumped hydro, which will support weather-dependent wind and solar, said Tim Nelson, a former senior AGL Energy executive and one of four experts appointed to lead an overhaul of the markets’ rules.