This report illustrates the technical challenges of the changing generation mix and the need for these to be managed with the support of efficient and effective regulatory and market mechanisms that work together for the least cost and long-term interest of consumers.
Of the 19 recommendations outlined in AEMO’s report, three have already been implemented which address more rigorous weather warning monitoring and improvements in System Restart Ancillary Service testing.
Work has commenced on a further eight recommendations, with the remaining items due to be completed by December 2017.
Given the range of potential developments in consideration within the NEM, and the interdependencies between them, AEMO reaffirms the need for a coordinated, national planning approach for energy transformation is imperative to enable optimal solutions to be implemented in the long-term interest of National Electricity Market (NEM) consumers.
AEMO is continuing its work to support the transition to a power system of the future, including working with stakeholders on the Future Power System Security (FPSS) program, and collaborative engagement with the Australian Energy Market Commission (AEMC) and the Finkel review.
AEMO will continue to work closely with industry and policy makers to enable an efficient and secure Australian energy market for future generations.