The electricity sector in Australia is experiencing a period of change as the proportion of newer types of electricity generation, such as wind and solar, increases. These new sources of electricity are changing the way Australia’s power system works.

Challenges in maintaining power system security are emerging because of the physics of maintaining technical generation parameters like grid frequency.

The Australian Energy Market Commission today announces a new review to address current concerns with frequency performance in the NEM and to consider how best to integrate faster frequency control services offered by new technologies into the current regulatory and market arrangements.

This new review will progress a number of recommendations made by the AEMC in its System security market frameworks review for possible changes to market arrangements that will lead to more efficient outcomes for energy consumers while delivering a secure operating system.

This review will provide recommendations to the COAG Energy Council with a progress report to the nation’s energy ministers due by the end of 2017.

Recommendations may include proposed revisions to technical standards, refinements to existing markets for frequency control services, and the establishment of new markets or other changes to the regulatory and market framework.