The Australian Energy Regulator (AER) has published guidance on the Efficient management of system strength framework (Guidance Note) responding to stakeholder feedback on draft guidance released in October 2024. This guidance note will provide guidance to system strength service providers (SSSPs) so that they can proactively plan for, and procure, system strength.
The guidance note itself is not 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 electricity consumers.
The AER has also published a Response to consultation on draft guidance document which contains a summary of stakeholder submissions to components of the draft guidance, along with the AER’s response and marked-up changes to the draft guidance.
Some parts of the draft guidance note draw on information provided in the AER’s System Security Network Support Payment Draft Guideline.
Background
In 2021, the AEMC made significant changes to the regulatory framework for system strength through the Efficient management of system strength on the power system rule change. The rule change included new obligations relating to the supply of, and demand for, system strength and a new way of charging for system strength supplied. The focus of the rule change was to create a more proactive approach to delivering minimum and efficient levels of system strength to support the connection of inverter-based resources, replacing a framework assessed as being too slow and reactive.
On the supply side, the rule change created obligations for certain Transmission Network Service Providers (TNSPs) in each region of the National Electricity Market (NEM) to proactively plan for, and procure, system strength to meet a planning standard specified in Schedule 5.1 of the NER. These TNSPs (Transgrid, Powerlink, ElectraNet, TasNetworks and AEMO in Victoria) are designated in the National Electricity Rules as SSSPs.
Stages of this framework have been iteratively introduced over the past two years and SSSPs are required to meet the new system strength planning standard for the first time in the compliance year commencing 2 December 2025.
On 9 October 2024 the AER published draft guidance on the Efficient management of system strength framework for consultation. A summary of issues raised in submissions, along with our response to those submissions, is included in our Response to consultation on draft guidance document.