On 21 October 2021, the Australian Energy Market Commission completed the “Efficient management of system strength on the power system” rule change. System strength is a critical service that supports inverter based resources, such as wind and solar generation, and batteries, as they become a key part of the generation mix in the National Electricity Market (NEM).
The rule change seeks a more forward looking, coordinated solution for the supply and demand of system strength in the NEM. A key aspect of this solution is providing connecting parties a choice between remediating their own system strength impact or paying the transmission network a charge for providing system strength services.
On 2 June 2022, we published the draft amendments to our transmission pricing methodology guidelines to include how to price system strength services in the NEM.
- the permitted methodologies for determining the system strength unit price, and
- the principles for forecasting system strength revenues.
For previous amendments to our transmission pricing methodology guidelines, please see the Pricing methodology guidelines 2014 webpage.