Rule Change: Open

Overview

On 27 April 2020, TransGrid submitted a rule change request to amend the National Electricity Rules regarding the provision of system strength in the national electricity market (NEM).
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On 27 April 2020, TransGrid submitted a rule change request to amend the National Electricity Rules regarding the provision of system strength in the national electricity market (NEM). 

The request proposes to abolish the “do no harm” obligation and amend the minimum system strength requirements. This is intended to provide system strength in the NEM in a more proactive manner, to maintain a secure power system, and to provide additional levels of system strength to streamline the connection of new non-synchronous generators. 

TransGrid’s rule change is one of seven rule change requests the AEMC commenced consultation on through the System services consultation paper. It is also being progressed alongside the AEMC’s Investigation into system strength frameworks in the NEM. Submissions to the consultation paper were due on 13 August 2020 and can be found below.

On 24 September 2020 the Commission extended the period of time for making the draft determination to 24 December 2020 under section 107 of the NEL. 

This extension will allow the Commission sufficient time to develop and consult on how the system strength frameworks should be evolved, reflecting the complexity of the issues involved. This has been informed by stakeholder submissions to the consultation paper, the need to prioritise important system security issues, as well as stakeholder feedback related to the need for coordination between the AEMC’s work program and the ESB’s Post 2025 Market Design work program. The extension will also allow AEMO to provide key technical advice. 

Other relevant system services rule change processes underway

The AEMC has seven rule change requests relating to the provision of system services that it is currently assessing.  Collectively, the AEMC refers to these rule requests as the “system services” rule change requests.  

These system services rule change requests complement and are interdependent with the work of the Energy Security Board (ESB) to develop advice on a long-term, fit-for-purpose market framework to support reliability that could apply from the mid-2020's. The AEMC is working closely with the ESB and the other market bodies as it progresses these rule change requests. 

We are considering the interactions between issues raised in the different rule changes so that any new frameworks developed in response to the rule change requests will be focused on delivering the most efficient outcomes for consumers.   

The AEMC will be making draft determinations for each of the rule change requests over the coming year prioritising more urgent system security issues while continuing to coordinate with ESB work and seek key technical input from the Australian Energy Market Operator (AEMO).  

More information on each of the system services rule changes can be found at the links below: 

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