The Reliability Panel has released its National Electricity Market (NEM) Reliability & Security Report, finding Australia's electricity market continued to maintain expected levels of reliability, security and safety during the 2023-24 financial year.
The comprehensive review, formerly known as the Annual Market Performance Review, assessed the performance of the NEM and identified five key insights highlighting the significant transformation underway in Australia's energy system.
Key findings include;
- Reliability maintained: The NEM continued to deliver high levels of reliability with no breaches of the reliability standard or interim reliability measure in FY2024.
- Security challenges persist: System security remains a pressing challenge as the energy transition accelerates, requiring ongoing focus on essential system services.
- Battery growth accelerating: Both distributed and utility-scale battery capacity is increasing rapidly, with effective orchestration and price signals needed to deliver greater customer and system benefits.
- Price patterns evolving: Wholesale electricity price patterns are changing as the energy mix transforms.
- Safety record strong: No safety incidents occurred in the reporting period, that are within the scope of the Panel’s reporting.
Reliability Panel Chair Tim Jordan said while the NEM's current performance was satisfactory, more investment beyond currently committed projects will be required to ensure reliability in future years.
"The Panel’s report highlights the significant transformation the NEM is undergoing as we transition from a thermal-dominated system to one increasingly powered by renewable energy and storage," Mr Jordan said.
"Battery storage is growing rapidly – utility-scale batteries doubled in capacity in FY2024, and distributed batteries tripled. That shows the market is adapting well.
“Looking forward, however, the Panel recognises that AEMO is forecasting reliability gaps as early as 2026-27. Continued investment beyond current commitments is crucial for maintaining reliable electricity supply."
The Panel emphasised the critical importance of identifying system security needs early to allow sufficient lead time for timely investment in essential system services in a changing system.
The review draws on comprehensive data from the Australian Energy Market Operator, the Australian Energy Regulator, market participants and other sources to provide an authoritative assessment of the electricity market's performance.
The NEM Reliability & Security Report is conducted annually by the Reliability Panel in line with the National Electricity Rules and terms of reference issued by the Australian Energy Market Commission.
For more information, visit the project page.
Media: Jessica Rich, 0459 918 964, media@aemc.gov.au