The decision followed a meeting chaired by Energy Minister Chris Bowen with state and territory counterparts.
The meeting also saw the national energy objectives updated for the first time in 15 years, with ministers agreeing to an emissions reduction objective.
Mr Bowen said while the agreement at the meeting would not solve all issues in the sector, they would go a long way to providing more reliable energy.
"It's fair to say the challenges remain, they remain this year, they remain next year, into the immediate future," he told reporters in Canberra.
"It's not a silver bullet but it is an important next step building on the reforms we agreed in June in relation to AEMO's power to buy and store gas."
The addition of the emissions reduction objective will ensure measures such as net-zero targets would be delivered in the best interest for energy customers.
"It might not sound like much, but this is very important," Mr Bowen said.
"It sends a clear message to our energy market operators that they must include emissions reductions in the work that they do, in the objectives they have, in any advice or decisions they make."
Queensland Energy Minister Mick de Brenni welcomed the emissions objective outlined in the meeting.
"This will make sure that our market bodies look beyond just electrons and dollars when they're taking actions and making decisions on behalf of our national energy market," he said.
The Clean Energy Council said the ministers' decisions signalled a "green light" for low-cost renewable energy, after 15 years of the industry calling for reform.
"The message could not be more explicit – Australia's governments are united in accelerating reform to deliver a clean energy future," chief executive Kane Thornton said.
Ministers at the meeting also agreed to reform the retailer of last resort regime.
The regime is designed so electricity or gas can still be provided to households and businesses should there be a temporary failure in the energy market.
NSW minister Matt Kean said domestic supply of gas needed to be ensured, with large amounts being exported.
"We need to prioritise Australian gas for Australian gas users," he said.
Mr Kean said the latest meeting of energy ministers was the "most constructive and productive" in recent years, following on from the reforms proposed.
"This is the first time we're all on the same page moving forward to build a modern energy system that's going to benefit consumers," he said.
"It's going to benefit businesses, it's going to benefit the environment. And most importantly, it's going to benefit our economy."
Under the national energy transformation partnership, ministers agreed to identify transmission projects that have national significance.
Mr Bowen said the declaration would allow for the transmission lines to be delivered on time.
Energy Consumers Australia said the agreement provided a scaffold for policies and actions that let consumers participate, while also lowering their power use and bills.
"Bringing down bills needs urgent action and we look forward to working with governments on the implementation of the plan and work program to do this," chief executive Lynne Gallagher said.
Energy company Squadron Energy said it was encouraged by Friday's policy decisions - in particular, giving power to the market operator to procure and store gas.
A First Nations strategy for energy will also be developed, which will be co-designed with Indigenous people.
The transition to renewables needed to happen at pace, but also ensure First Nations heritage was protected, and communities shared in economic and social benefits, The First Nations Clean Energy Network said.
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