The AER has today published its determination specifying actions Powerlink must take to respond to a material change in circumstances (MCC) in relation to its regulatory investment test for transmission (RIT-T) on Addressing System Strength Requirements in Queensland from December 2025.
In a written notice to the AER on 19 August 2026, Powerlink identified that an MCC had occurred for its Addressing System Strength in Queensland from 2025 RIT-T.
In response, Powerlink proposed actions to undertake analysis on the identified MCC, publish a draft statement setting out whether the preferred option has changed and, if so, identify the new preferred option.
Having considered Powerlink’s notice, our determination accepts Powerlink’s proposed actions to address the identified MCC. We consider these actions will support a robust and transparent analysis and provide stakeholders with sufficient opportunity to respond.
Powerlink will prepare and publish a final statement which responds to submissions and identifies any refinement to the preferred option after a 30 business day public consultation period.
We require Powerlink to publish its draft analysis by 19 October 2026 and its final statement by 9 December 2026, in line with the timeframe set out in its proposed actions.
Background
Powerlink is responsible for ensuring sufficient system strength services are available to maintain the stability of the Queensland power system.
Between March 2023 and June 2025, Powerlink applied the RIT-T to assess options that would meet system strength requirements in Queensland from December 2025.
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.