The policy follows theAustralian Energy Market Operator (AEMO) 2019 Integrated System Plan - which identified the need for vast and urgent upgrades to the grid so it can harness booming solar power and replace the ageing coal fleet.
State and federal governments signed off on the plan last year,which found the grid could handle up to 75 per cent renewable energy as soon as 2025,with the right reforms.
Under the current system upgrades are proposed and funded by private network operators,which recoup construction costs through network charges on consumers'energy bills.
Opposition energy and climate change spokesman Mark Butler said the policy would produce"lower power bills for Australians"under the Rewiring the Nation fund,which would provide lower interest rates than private loans,and set project tenders that mandate local labour and steel.
The policy would also provide planning flexibility to ensure grid upgrades keep pace with new technology,he said.
"Some transmission companies have already reported trouble accessing finance for these critical projects and are seeking rule changes to fast-track revenues from Australian consumers,"Mr Butler said.