On 22 May 2025, the Australian Energy Market Commission (AEMC) published a final determination and a more preferable final rule to improve the National Electricity Market (NEM) access standards in response to a rule change request from the Australian Energy Market Operator (AEMO).

Final determination

The NEM access standards define the permissible range of technical performance that connection applicants need to meet before being allowed to connect to the NEM. The final rule will improve the access standards by:

• adding more prescription and clarity
• aligning them with best power system performance needs
• making them more fit for purpose in an increasingly inverter-based resources connected NEM
• broadening their application to synchronous condensers and high voltage direct current (HVDC) links.

The improved access standards will:

• improve power system resilience
• streamline the connection process
• support efficient investment in and operation of the NEM
• help reduce costs and time spent in negotiations between connection applicants, network service providers and AEMO.

This is the most significant overhaul of the NEM access standards since the 2018 Generator technical performance standards rule change.

The final rule makes several clarifications and additions compared to the draft rule in response to stakeholder feedback. 

The final rule also includes transitional provisions to minimise disruptions to ongoing connection applications. Connection applicants can choose to apply either all, or some, of the new access standards, depending on their stage in the application process.

Background

On 4 April 2024, the AEMC received a rule change request from AEMO to improve the technical requirements for NEM connection (known as access standards) contained in Chapter 5 of the National Electricity Rules (NER) and its accompanying schedules. This rule change request was to give effect to AEMO’s final recommendations in its review of technical requirements for connection, which AEMO is required to conduct at least once every five years.

The AEMC initiated this rule change under the fast-track process and published a draft determination and draft rule on 5 December 2024, broadly reflecting AEMO’s proposals, and received 23 submissions in response.

This rule change is part of a broader connections reform agenda being pursued by the AEMC in collaboration with AEMO and the industry, including the Enhancing investment certainty in the R1 process rule change (completed in 2024 as part of the Connections Reform Initiative), the Improving the NEM access standards – Package 2 rule change, and further reviews being undertaken by AEMO.