Market Operator Report Highlights Challenges

The market operator’s latest system security report is a reminder of the urgent need to deliver critical infrastructure on time as well as the vital importance of considering the best ways to ensure grid stability, according to the peak body for generators, the Australian Energy Council. 

The AEC’s Chief Executive Officer, Louisa Kinnear, said “the Australian Energy Market Operator’s openness and willingness to shine a light on the challenges that need to be solved in its Transition Plan for System Security is important and timely. 

“In particular, the report highlights there are risks to relying heavily on a single technology, in the form of synchronous condensers, to deliver the essential system services (ESS) needed to ensure the integrity of the grid. 

“In the short term, synchronous condensers can provide good support to the system but they have faced delays and availability issues. For the longer term we need to progress other solutions with generators and transmission companies working alongside AEMO. 

“Traditionally essential system services, which are a critical part of managing the transition, have been provided by thermal plant, and as older plant like coal retires, we need to consider the best replacement options. 

“As this report shows there are different ways system services could be provided and we support AEMO’s current trials into a range of technologies, such as grid-forming inverters, gas-fired generators with clutches and large inverter-based loads. 

"We have long argued there should be scope for a broader suite of technologies to play a role and for a level playing field via an inertia market to offer more options and realistic solutions at least cost to efficiently deal with this challenge.” 

About the Australian Energy Council 

The Australian Energy Council is the peak industry body for electricity and downstream natural gas businesses operating in the competitive wholesale and retail energy markets. AEC members generate and sell energy to 10 million homes and businesses and are major investors in renewable energy generation. The AEC supports reaching net-zero by 2050 and is committed to delivering the energy transition for the benefit of consumers.