Market Review: Completed
Overview
On 11 December 2025, the Reliability Panel (Panel) published a final determination for the Review of the System restart standard (Standard). The final determination includes a revised Standard along with final recommendations for actions to enhance system restart preparedness.
The Panel’s final determination is informed by technical advice provided by the Australian Energy Market Operator (AEMO) that describes the challenges and opportunities related to system restart in the context of the transitioning power system.
In response to AEMO’s technical advice, the revised Standard provides greater flexibility for AEMO to support its procurement of System restart ancillary services (SRAS) to meet the needs of the changing power system.
The Panel makes recommendations to strengthen the existing system restart regulatory framework and actions by AEMO to improve system restart preparedness, including a proposal for changes to the Rules that would seek to clarify requirements for forward-looking restoration planning and strengthen frameworks to validate this plan.
The Panel aims to submit a Rule change request based on its findings from this Review, in Q1 2026, for the Commission’s consideration.
The transition introduces challenges in ensuring system restart capability
AEMO has identified several challenges for the provision of System Restart Ancillary Services (SRAS) and system restart planning due to ongoing changes in the power system:
- reduced availability and participation of existing restart units which is impacting the ability to meet the Standard.
- high concentrations of distributed photovoltaic (PV) generation at consumer locations can impact the ability to stabilise restart islands.
- resiliency and flexibility is required in restart pathways as the power grid becomes inherently more complex.
In making its final determination, the Panel considered stakeholder feedback to its draft determination
On 4 September 2025, the Panel published a draft determination and draft Standard to seek stakeholder feedback on the Panel’s preliminary policy positions. Stakeholder feedback to the draft determination closed on 16 October 2025.
Overall, stakeholders supported the draft Standard and draft recommendations related to procurement and investment, and transparency and reporting.
However, stakeholders considered the Rules framework with respect to SRAS testing and local black system procedure (LBSP) frameworks could be strengthened to better support effective system restart capability.
Summary of the changes to the final Standard
In considering stakeholder feedback on the Panel’s draft Standard, the Panel makes the following updates to this final Standard, while retaining all other elements of the draft Standard:
- minor amendments to the wording in the introduction of the Standard to include a stronger reference to restoration support services
- inclusion of an additional criterion in the guidelines for assessing diversity of services (Section 9 of the final Standard), for AEMO to identify systemic risks relevant in determining the aggregate reliability of SRAS in an electrical sub-network
- revisions to clarify how AEMO takes into consideration the guidance from the relevant jurisdictional system security coordinator (JSSC) in relation to the strategic location of SRAS for each electrical sub-network and the existence of any sensitive loads.
In response to AEMO’s technical advice and stakeholder feedback, the revised Standard provides greater flexibility to support procurement of SRAS to meet the needs of the changing power system. The key elements of the revised Standard are:
- revised targets for system restoration to support enhanced restart preparedness and procurement of restoration support services
- increased aggregate required reliability for SRAS in the mainland National Energy Market (NEM) regions, reflecting the Panel’s analysis of the value provided by a reliable system restart capability
- a requirement for AEMO to consider advice provided by a regional Jurisdictional system security coordinator with respect to the strategic location and number of SRAS and the potential impact to sensitive loads such as aluminium smelters.
The revised standard will take effect from 1 July 2027.
Summary of findings on the NEM System restart frameworks
In considering stakeholder feedback, the Panel recommends that a Rule change request be submitted to the AEMC on the matters related to the system restart regulatory framework including:
- transparency and reporting: to clarify the inclusion of system restoration modelling and planning through the Transition Plan for System Security (TPSS) and Electricity Statement of Opportunities (ESOO)
- testing arrangements: to strengthen the system restoration testing framework and support deeper network testing
- LBSP framework: to strengthen the framework by clarifying the information provided and further effect energy support arrangements.
The Panel also makes recommendations for AEMO to:
- proactively procure SRAS to meet power system needs
- identify system restart needs in advance, supported by future focussed restoration modelling
- review the LBSP Guidelines to support improved information quality to AEMO through local black system plans.
Initiation of the review and publication of the draft determination
On 12 December 2024, the Panel published the terms of reference and Issues paper to commence its periodic review of the Standard.
Background
In the event of a major supply disruption, SRAS or restart services may be used to supply sufficient energy to restart power stations in order to begin the process of restoring the power system. Such an event, also known as a black system event, typically involves a substantial loss of generation and supply to customer load.
Under clauses 8.8.1(a)(1A) and 8.8.3(aa) or the National Electricity Rules (NER), the Panel is responsible for determining the Standard. The Standard sets out several key parameters for system restoration, including the speed of restoration, how much supply is to be restored and the level of reliability of SRAS and guides AEMO’s procurement of SRAS.
The Standard is part of the system restart regulatory framework that relates to the requirements and responsibilities for the restoration of the power system following a major supply disruption that leads to the unplanned de-energisation of part of the transmission system.