In mid-2021 Australian energy ministers will decide on a new ‘Post-2025’ design for the National Electricity Market (NEM), on advice from the Energy Security Board (ESB). The goal is to maintain reliability and security as coal and gas are increasingly displaced by renewable energy.
The focus of the ESB’s Essential System Services work is to design a market to supply more inertia and system strength. Inertia controls frequency and system strength maintains voltage.
The Australia Institute commissioned a technical study on inertia and system strength from the Victorian Energy Policy Centre, to provide evidence for input into the Energy Security Board (ESB) process. This companion paper summarises the key findings of the technical study, as well as provides context and wider recommendations on energy reform.