AEMO review of technical requirements for connection (NER clause 5.2.6A)

12/10/2022
Market National Electricity Market
StageSecond Stage
ConvenorAEMO NEM
Initiated12/10/2022
Accepting submissions?Yes
Submissions close23/08/2023

Timeline

  • Publication of the approach paper
    12 October 2022
  • Publication of the draft report
    3 March 2023
  • Publication of addendum to the draft report
    4 April 2023
  • Consultation on the draft report closes
    20 April 2023
  • Consultation on addendum to the draft report closes
    23 May 2023
  • Publication of Update Report Part 1 including draft NER amendments 
    26 July 2023
  • Consultation closure on Update Report Part 1
    23 August 2023
  • Publication of the final report
    December 2023

Key contact

A mail icon. Email: contact.connections@aemo.com.au

Overview

Under clause 5.2.6A(a) of the National Electricity Rules (NER), AEMO must conduct a review of some or all of the technical requirements in Schedules 5.2, 5.3 and 5.3a of the NER at least once in every five-year period to assess whether those requirements should be amended. 

In conducting this review, among other things, AEMO is required to have regard to:

  1. the national electricity objective
  2. the need to achieve and maintain power system security
  3. changes in power system conditions; and
  4. changes in technology and capabilities of facilities and plant.

Clause 5.2.6A was introduced in October 2018, and this is the first review under that provision. The review is to be completed within 12 months of the publication of an approach paper and a draft and final reports following industry consultation including with the Reliability Panel.

At the end of this review, the AEMO final report may recommend NER amendments by way of a rule change request to the Australian Energy Market Commission.

Draft Report and Addendum

The draft report set out AEMO’s initial recommendations on proposed amendments to the NER technical requirements for connection in the National Electricity Market (NEM). In total, AEMO recommended amendments to address 44 issues raised in relation to Schedule 5.2 and Schedule 5.3a following a series of workshops with affected stakeholders.

AEMO’s recommendations were published in two parts:

  • The primary draft report, setting out AEMO’s recommendations for amendments to NER Schedule 5.2 (Conditions for connection of Generators and Integrated Resource Providers) and Schedule 5.3a (Conditions for connection of Market Network Services).
  • An addendum to the draft report, setting out AEMO’s recommendations for amendments to NER Schedule 5.3 (Conditions for connection of Customers).

The addendum to the draft report updated the initial version of AEMO’s draft report under the Review and was published on 3 March 2023. Section 4 of the addendum replaced section 4 of the draft report.

Recommended amendments in the addendum primarily sought to extend existing customer connection requirements to accommodate connections for large loads in light of anticipated growth in large inverter-based loads, and more generally, anticipated electrification of industrial processes as a part of the energy transition to use of renewable energy sources.

Update Report and draft NER amendments

PART 1 – generator and HVDC link connections

AEMO  published Part 1 of its Draft Recommendations Update Report (Update Report) on 26 July 2023.

The Update Report presents AEMO’s consideration of stakeholder views and revised recommendations for amendments to the NER Schedule 5.2 and Schedule 5.3a technical requirements for connection in the NEM. It also makes further recommendations for structural changes and consequential amendments to the NER to improve the clarity of the technical requirements and their application to relevant plant and participants, and provides indicative draft NER amendments for stakeholder consideration. AEMO considers these will be necessary to effectively implement the primary recommendations arising from the Review.

The Update Report is supported by two key appendices which provide important detail for stakeholders:

  • Stakeholder consultation analysis and revised recommendations – this analysis summarises stakeholder feedback received for each draft report recommendation, analyses feedback received, and sets out reasons for AEMO’s decision to either revise or retain draft report recommendations.

  • NER amendments – initial proposed drafting of NER changes that could give effect to the revised recommendations, provided in mark-up form.

The key objective of publishing the Update Report is to provide stakeholders with the opportunity to review AEMO’s revised recommendations to account for stakeholder feedback on the draft report, as well as further issues arising in the process of AEMO’s development of potential amendments. AEMO is also providing an initial draft of potential NER amendments to give effect to the revised recommendations, for further feedback prior to AEMO publishing its final report under the Review.

PART 2 – large load connections

Additional workshops on large load connections are being held at the end of August 2023. AEMO will subsequently advise next steps in the review of load standards.

Final Report

The next and final stage of this Review requires AEMO to publish a its final recommendations for amendments to the technical requirements set out in Schedules 5.2, 5.3 and 5.3a. In this final report, AEMO will also include recommended NER amendments where possible. The final report will have regard to submissions made in response to its Draft Report and Update Reports. The Final Report will be published in November 2023.

Engagement

Engagement on Update Report (Part 1)

AEMO facilitated a public webinar forum on Wednesday 9 August 2023 to discuss the recommendations set out in its Update Report (Part 1).

The webinar provided:

  • Current status of the Review
  • An overview of revised recommendations of the Update Report (Part 1)
  • The opportunity for stakeholders to raise questions or issues regarding the revised recommendations.

The presentation slides are available for those who were unable to attend but interested in learning about the Review and its revised recommendations.

Submissions

In response to the Update Report (Part 1), AEMO received 23 submissions.

In response to the Draft Report and addendum, AEMO received:

  • 18 submissions on the technical requirements and recommendations in the primary draft report (relating to Schedules 5.2 and 5.3a
  • 11 submissions on the technical requirements and recommendations in the addendum to the draft report (relating to Schedule 5.3).

See below to access submission made.

Next steps

Through the next stage of this Review, AEMO will finalise its recommendations based on stakeholder feedback to the Update Reports, and will develop draft NER amendments where possible. The outcomes of this consultation will be incorporated into the final report under this Review.

Documents

  • Approach paper
  • Draft report
  • Draft Report Addendum
  • Update Report
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