The Reliability Panel has commenced a review of the system restart standard following receipt of terms of reference from the Australian Energy Market Commission (AEMC).
The Chair of the Reliability Panel, Tim Jordan, says the review comes at a crucial time for the energy sector.
"As our electricity system undergoes unprecedented change, we need to ensure our system restart processes remain fit for purpose."
‘’This review is both timely and critical given the transformation underway in Australia's electricity system,’’ he said.
The power system is experiencing unprecedented change with thermal generation units progressively retiring alongside increasing transmission-connected renewable generation, batteries and distribution-connected resources.
Maintaining system security through this transition is crucial for achieving a stable, decarbonised electricity system.
The Australian Energy Market Operator (AEMO) reports growing challenges in securing adequate System Restart Ancillary Services (SRAS) across the National Electricity Market.
SRAS providers help kick-start the power system by providing energy to other generators following a major blackout, which in turn restore supply to consumers.
Current challenges include:
- increasing reliance on a shrinking pool of SRAS providers
- scarcity of SRAS capability among new transmission-level generators
- rising system restoration risks from high levels of distribution-connected PV generation.
To address these challenges, the regulatory framework may need updating to provide clear investment signals that support competitive and efficient system restart services. This will help ensure better outcomes for consumers.
The review comprises two stages:
- Framework Review: Assessing whether current regulatory arrangements suit the future power system outlined in AEMO's Integrated System Plan
- Standard Update: Revising the system restart standard based on stage one findings, considering major supply disruption risks and SRAS availability and costs
The Panel has released an issues paper seeking stakeholder feedback on:
- future requirements for system restart planning
- barriers to developing new system restart capability
- improvements to drive investment in system restart services.
"With new technologies entering the market and traditional generators retiring, it's critical we get the Standard right. I encourage all stakeholders to engage with this review to help shape a resilient and secure energy future,’’ Mr Jordan said.
Submissions close 30 January 2025. The AEMC welcomes input from all stakeholders on this important review.
Media: Jessica Rich, 0459 918 964, media@aemc.gov.au