On 2 March 2023, the Australian Energy Market Commission (AEMC) released a consultation paper regarding a rule change request from the Australian Energy Council (AEC). The request proposed the creation of a spot market for inertia, as a solution to declining system inertia, as synchronous generation capacity decreases and is replaced by inverter-based resources.
The consultation paper sought stakeholders’ input on these issues, including problems with the current inertia framework, whether the proposed spot market was the best solution to declining system inertia, and criteria to assess potential inertia procurement frameworks.
The AER made a submission to the consultation paper on 11 April 2023, highlighting the benefits of aligning the procurement of inertia with that of system strength, the importance of technology neutrality, and further consideration of the relationship between inertia and fast frequency response.
AER submission - AEMC Efficient provision of inertia consultation paper - 11 April 2023
More information can be found at the AEMC’s 2023 Efficient provision of inertia consultation page.