AEMO review of technical requirements for connection (NER clause 5.2.6A)

12/10/2022
Market National Electricity Market
StageFinal Report
ConvenorAEMO NEM
Initiated12/10/2022
Accepting submissions?No
Submissions close23/08/2023

Timeline

  • Publication of the approach paper
    12 October 2022
  • Publication of the draft report
    3 March 2023
  • Publication of addendum to the draft report
    4 April 2023
  • Consultation on the draft report closes
    20 April 2023
  • Consultation on addendum to the draft report closes
    23 May 2023
  • Publication of Update Report Part 1 including draft NER amendments 
    26 July 2023
  • Consultation closure on Update Report Part 1
    23 August 2023
  • Publication of the final report
    December 2023
  • Submission of Rule change proposals to AEMC
    04 April 2024

Key contact

A mail icon. Email: contact.connections@aemo.com.au

Overview

AEMO has completed its first five-yearly review of the technical requirements for National Electricity Market (NEM) connection, in NER Schedules 5.2, 5.3 and 5.3a through its Access Standards Review (Review). The schedules set out technical requirements for connection of generation (and, from June 2024, integrated resource systems), loads and market network service facilities, respectively.

The three National Electricity Rules (NER) schedules set out the access standards that may be agreed for the connection of relevant plant to NEM transmission and distribution networks by registered participants and some other parties, to establish required levels of plant capability or performance in relation to specified technical requirements. For most requirements, access may be negotiated between an automatic access standard (AAS) and a minimum access standard (MAS). A number of requirements also specify negotiating parameters and general conditions to be met in all cases.

National Electricity Rules requirements

AEMO conducted the Review under NER 5.2.6A of the NER, to assess the need for amendment to the technical requirements. Under NER 5.2.6A(a), AEMO must conduct a review of some or all of the technical requirements in NER Schedules 5.2, 5.3 and 5.3a once in every five-year period to assess whether those requirements should be amended. NER 5.2.6A was introduced in October 2018, and this was the first review under that provision.

In conducting this review, among other things, AEMO is required to have regard to:

1. the national electricity objective
2. the need to achieve and maintain power system security
3. changes in power system conditions; and
4. changes in technology and capabilities of facilities and plant.

Outcomes

Final report

In December 2023, AEMO published a final report making recommendations to address 44 issues in NER Schedules 5.2, 5.3, and 5.3a. Final recommendations, if given effect through a rule amendment process, will realise a range of benefits including:

  • aligning standards with best power system performance;
  • improving power system resilience;
  • streamlining the connections process; and
  • accommodating new technology associated with large loads, grid-forming inverters, synchronous condensers, and HVDC links.

Rule change proposals

In April 2024, AEMO submitted two initial rule change proposals to the Australian Energy Market Commission (AEMC) requesting amendments to the NER giving effect to the final Review recommendations. AEMO requested the AEMC consider the fast-track process for preliminary rule changes arising from the Schedule 5.2 and 5.3a recommendations. A standard rule change process was sought to address other recommendations. Stakeholders are encouraged to get involved with the AEMC rule change process. AEMO rule change proposals and associated documentation can be accessed at the AEMC website: ·

Further reviews

AEMO has identified three areas for further review:

1. Load technical requirements - The Review has indicated that the technologies for very large load projects in hydrogen production, which are most likely to impact power system security, are experiencing a period of rapid development. This requires a more detailed understanding of their potential capabilities in close collaboration with developers. AEMO intends to use the Schedule 5.3 recommendations as a starting point to develop more detailed technical requirements suitable for a Rule change proposal submission in 2025.

2. Connection of grid-forming (GFM) technology – AEMO has focussed initial recommendations for GFM connections on amending relevant technical requirements to ensure they do not inadvertently hinder the connection of GFM technology. AEMO acknowledges the importance of further work to develop core requirements to support the connection of GFM technology, which requires a prudent level of validation and testing. The further work will leverage the outcomes of lessons learnt and knowledge sharing material developed through the ARENA funded grid forming initiative to develop more detailed technical requirements suitable for a Rule change proposal submission in 2025.

3. AEMO’s role in smaller connections – AEMO is not presently recommending a size threshold on AEMO advisory matters, largely based on feedback opposing the change. However, AEMO considers there to be value in examining this question further, to consider more broadly AEMO’s role in efficiently supporting NPSs on power system security matters related to both individual and cumulative impacts of smaller plant on the operation of the power system. The timing for this review is still to be decided.


Documents

  • Approach paper
  • Draft report
  • Draft Report Addendum
  • Update Report
  • Final report
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