On 9 September 2026, the AER published its determination specifying actions Powerlink must take to respond to a material change in circumstances (MCC) in relation to its Addressing System Strength Requirements in Queensland from December 2025 regulatory investment test for transmission (RIT-T). This determination was made in accordance with clause 5.16.4(z5A)(2) and (4) of the National Electricity Rules (NER).
Our determination accepts Powerlink’s proposed actions to undertake analysis on the identified MCC, publish a draft statement and allow 30 business days of public consultation. Following this consultation, Powerlink will prepare and publish a final statement which responds to submissions and identifies any refinement to the preferred option. These actions are to be completed by 9 December 2026.
Background
Between March 2023 and July 2025, Powerlink applied the RIT-T to assess options that would address system strength shortfall projected by AEMO from December 2025 and meet system strength requirements in Queensland. Regulatory investment tests are a cost benefit test which network businesses must apply before undertaking investment in their networks to address an identified need.
The preferred option identified in the RIT-T includes:
- nine synchronous condensers across Central Queensland and Southern Queensland by June 2034;
- contracting for a range of synchronous units in Southern and Northern Queensland for minimum system strength requirements; and
- contracting for grid-forming Battery Energy Storage Systems in Southern, Central and Northern Queensland for efficient system strength requirements.
On 19 August 2026, Powerlink notified the AER that an MCC has occurred for this project in accordance with clause 5.16.4(z3)(4) of the NER. The notice identified that the primary cause of the MCC was that a RIT reopening trigger defined in the Project Assessment Conclusions Report has occurred. That is, that credible evidence has emerged that a change(s) in retirement dates and/or operational arrangements for coal generating units changes the identified need for system strength requirements, and/or the preferred option in this RIT-T.