In July 2016 the Australian Energy Market Commission initiated a power system review to guard against blackouts in the national electricity market.

The final report for the System Security Market Frameworks Review was released today along with a package of draft rules for public consultation on proposals to stabilise the grid in relation to frequency management and system strength. The draft rules address risks to energy security created by the power system’s changing generation technologies as more non-synchronous generators like wind and solar come in; and synchronous generators like coal retire.

What does this draft rule want to fix?

The changing generation mix means the power system has less inertia. Less system inertia means frequency may become volatile. If frequency changes too fast then the system is at high risk of going black. The power

system needs to be managed differently to integrate new technologies. This draft rule would help deliver more effective frequency control across the whole system.


Five rule requests are being considered concurrently with the security review

Two draft determinations are being released with the review final report :

Managing the Rate of Change of Power System Frequency (SA) 27 June

Managing Power System Fault Level (SA) 27 June

Two rule requests were combined into one project Emergency frequency control schemes (SA) with new rules made 30 March 2017 about AEMO managing risks of emergencies.

Fifth  request Inertia Ancillary Services Market (AGL) was addressed by the review’s directions paper which foreshadowed development of a market-sourcing mechanism for inertia. (Work underway and continuing)

Media contact AEMC Communication Director: Prudence Anderson 0404 821 935 or (02) 8296 7817 –