The Reliability Panel’s (Panel) FY2025 NEM Reliability and Security Report (RASR) summarises and provides analysis on the reliability and security performance of the power system across the 2024–25 financial year (FY2025). This report was previously named the Annual Market Performance Review (AMPR).

The Panel invites feedback on the focus areas for this report, particularly metrics relevant to assessing the benefits of potential operational procurement of inertia. Please direct responses to the following email address: panel@aemc.gov.au. Feedback will be used to inform future RASR reports.  

Final report observations

This year’s report found that the National Electricity Market (NEM) continued to maintain adequate levels of reliability and security. The Panel has identified four key insights arising from its analysis.

The NEM has continued to maintain high levels of reliability. However, timely investment in new generation and storage capacity and essential system services is needed ahead of coal generation retirements.

Recent regulatory reforms to strengthen system security appear to be addressing immediate challenges.

CER is a growing factor in delivering a reliable and secure power system. Effectively leveraging CER is essential if we are to maintain a reliable and secure power system.  

Wholesale price variation provides opportunities for different technologies and business models to meet power system needs.

Reliability

The Panel's assessment in the FY2025 RASR shows that:

• There was no breach of the reliability standard or interim reliability measure in FY2025
• FY2025 saw a significant increase in both utility-scale and distributed renewable generation and battery storage.
• Generation projects face delays and other challenges transitioning from proposed and anticipated stages to committed. This may, in turn, result in the delay of coal exits, primarily to ensure power system security can be maintained until key replacement assets are complete.  
• The reliability and emergency reserve trader was activated once in FY2025, indicating that other market signals were generally effective in managing reliability risks.
• FY2025 saw an increase in the proportion of negative prices in the NEM, driven by an increase in rooftop and utility-scale solar generation.
• Effectively leveraging CER is essential if we are to maintain a reliable and secure power system.

Security

The Panel found that security performance in the NEM was satisfactory during the reporting period. The Panel notes:

• There were two instances where the power system was not in a secure operating state for greater than 30 minutes, one in NSW caused by equipment failure, which required load, and one caused by an unplanned line outage at Muswellbrook, which caused the exceedance of inverter limits.
• Frequency control ancillary services costs continue to fall as market supply increases.
• Security directions have decreased significantly due to the culmination of many years of regulatory reforms,  investments and arrange of other technical work that has enabled SA to operate securely with fewer synchronous generators online.
• Minimum inertia requirements are likely to be met, 1-second FCAS prices are low and the value of the rate of change of frequency constraints are low. Together, these metrics align with the final Efficient provision of inertia, Rule determination, indicating that the benefits of an inertia market do not outweigh the costs at this time. The Panel is seeking feedback on the use of these metrics to refine reporting in future years.  
• Rising residential solar photovoltaics is causing low operational demand conditions to grow in most regions. Active operational management is increasingly required to maintain system security.

Key Events

There were a number of key market events in FY2025, including:

• Load shedding in Lismore, Northern NSW – 8 July 2024: To return the power system to a secure operating state, AEMO directed 40 MW of load to be shed in the Lismore area. The event affected around 28,000 customers over three hours.
• NEM Market Suspension – 5 September 2024: An information technology failure impacted AEMOs dispatch process and other critical systems, requiring it to suspend the spot market in all NEM regions and compensate market participant's ex-post.
• Trip of Loy Yang Power Station 500 kV busbar – 6 September 2024: An internal fault caused a 500 kV No.4 busbar at Loy Yang Power Station (LYPS) to trip. Post-incident investigations revealed further defective equipment and prompted updates to relay standards.
• Tower failures in SA and NSW – 16-17 October 2024: Damaging winds and large hail across NSW and SA caused the failure of 39 transmission structures, resulting in five power system incidents, including the islanding of Broken Hill.192 MW of customer load and 183 MW of generation was lost.

The current terms of reference do not require the Panel to report on the safety of the national electricity system.

Background

The RASR assesses reliability and security outcomes relevant to the NEM undergoing rapid transition. This year’s report covers the period from 1 July 2024 to 30 June 2025.  

The report compiles information collected from various sources, including the Australian Energy Market Operator, the Australian Energy Regulator, and market participants.  

The purpose of the report is to:  

• Assess the performance of the power system against various reliability and security measures  
• Consolidate key information related to the performance of the power system and present observations and commentary in a single publication for the purpose of informing stakeholders
• Consider specific events that have occurred in the NEM over the reporting period.

About the Reliability Panel

The Reliability Panel’s core functions relate to the security, reliability, and safety of the national electricity system. The focus of the Panel’s work is on determining standards and guidelines that are part of the framework for maintaining a secure and reliable power system.  

The Panel members broadly represent the stakeholders interested in the operation of the power system and the electricity market, including consumer groups, generators, network service providers, retailers and the power system and the market operator.