Rule Change: Open
Overview
On 11 September 2025, the Commission published a draft determination and rule to clarify the application of the integrated resource provider (IRP) participant registration category to standalone synchronous condensers.
This draft rule adds a note to clause 2.3.4(b) of the National Electricity Rules (NER). This note enhances clarity and supports the confidence necessary for investment in standalone synchronous condensers as system security service providers.
The Commission is seeking submissions to its draft determination by 23 October 2025.
Background
On 20 August 2024, the Australian Energy Market Commission (AEMC) received a rule change request from CS Energy. The request sought to clarify registration arrangements for non-generating units, particularly standalone synchronous condensers, providing system security services.
CS Energy considered that no suitable participant registration category is currently available in the National Electricity Rules (NER) for standalone synchronous condensers. This may preclude them from providing system security services under the NER's system strength and inertia frameworks.
CS Energy has proposed adding a new registration category covering non-generating systems providing system security services to NER Chapter 2 to address this issue.
On 5 June 2025, the Commission published a consultation paper seeking stakeholder views on the identified issue and on options to address it. The Commission seeks stakeholder views on applying the Integrated Resource Provider (IRP) registration category to standalone synchronous condenser registration.