On 8 May 2025, the Australian Energy Market Commission (AEMC) published a consultation paper and consolidated three rule change requests related to the access standards for connection to the National Electricity Market (NEM). These are:

• AEMO: Improving the NEM access standards – Package 2.
• Rod Hughes Consulting: Definitions of protection system requirements.
• Rod Hughes Consulting: Conditions for generator protection systems.

Stakeholder submissions were due on 19 June 2025, and the feedback provided in submissions will inform the draft rule determination, if made.

We are setting up a technical working group (TWG) to analyse the policy options with stakeholders

Submissions to the consultation paper expressed varied views on ways to address the potential power system security impacts from large load connections to the NEM. We note that industry understandings of load technology are in their early stages and warrant deeper analysis.

For this reason, we are setting up a TWG with interested stakeholders to engage in more detailed consultation and technical analysis of customer load interactions with system security before amending any rules.

The TWG meetings will be held on 29 October and 19 November 2025. We will publish materials in advance of these meetings to keep stakeholders informed, and we welcome any feedback on those materials.

Because of the complexity of issues raised in consultation, which we will work through in the TWG process, the AEMC has extended publication for the draft rule determination to 12 March 2026.

Background

In December 2023, the Australian Energy Market Operator (AEMO) completed its first review of the NEM access standards, which it must complete every five years. The access standards in the National Electricity Rules (NER) define the permissible range of technical requirements that connection applicants need to meet before being allowed to connect to the NEM. These standards need to be updated as our power system evolves to meet Australia's net zero target and, in turn, ensure the secure operation of the NEM.

Following the review, AEMO submitted two rule change requests to the AEMC in April 2024.

• The first request (Improving the NEM Access Standards - Package 1) ) is being progressed through the fast-tracked rule change process, and the final determination and rule will bewas published on 22 May 2025.
• The Commission has now initiated AEMO's second rule change request, Improving the NEM Access Standards - Package 2. We considering Package 2 through the standard rule change process.

The key driver of AEMO's Package 2 rule change request is the projected increase of large, inverter-based loads, such as data centres and hydrogen electrolysers. AEMO's review found that this projected growth could pose potential risks to the secure operation of the power system and that the existing customer access standards in schedule 5.3 of the NER should be improved to better manage those risks.

Accordingly, the Package 2 rule change request proposes amendments to schedule 5.3 to facilitate the planning and design of large loads in a way that supports future power system security. AEMO also proposes amendments to the access standards for high-voltage direct current (HVDC) links (schedule 5.3a) and other improvements relating to access standards.

Consolidation

The Commission has consolidated two rule change requests from Rod Hughes Consulting (listed above) with AEMO's Package 2 rule change request, as they are substantially related, can be considered more efficiently together, and will allow stakeholders to engage with the three rule change requests via one process.  

The two rule change requests from Rod Hughes Consulting relate to the conditions for generator protection systems, submitted in January 2023, and definitions of protection system requirements, submitted in March 2023.

These requests aim to address inconsistencies in the NER observed by the proponent and support power system security by clarifying the protection systems requirements and ensuring that new connections meet those requirements. This would also help reduce the cost of new connections and the time and cost of negotiating performance standards.