System strength is an essential service required for the correct operation of network protection systems along with the stable operation of inverter-based resources.
The energy transition from synchronous generation to variable, inverter-based generation is resulting in both a reduction in supply of, and increase in demand for, system strength.
In October 2021 the Australian Energy Market Commission (AEMC) made the final Efficient management of system strength on the power system rule, which introduced a new framework to manage the demand and supply of system strength.
The Efficient management of system strength framework introduces a role for System Strength Service Providers (SSSPs) to proactively plan for, and procure, system strength.
The AER, along with the Australian Energy Market Operator (AEMO) and SSSPs have identified several issues about the implementation of the new system strength framework. Several issues have also been raised by SSSPs regarding how they can comply with their system strength obligations while reducing costs to consumers.
The AER has developed guidance intended to help SSSPs navigate this new framework. The guidance itself will not be binding on any party but will reflect our consideration of how SSSPs might best comply with their obligations at least cost and in the long-term interests of consumers of electricity.
Have your say
We invite interested parties to make submissions on the draft guidance on the Efficient management of system strength framework.
Consultation closes on 30 October 2024.