Transmission system operational capability framework

Background

What is transmission system operational capability?

Transmission system operational capability is the ability to coordinate, monitor and operate the transmission system, and to respond effectively when system conditions change. Its purpose is to support secure, reliable and efficient operation of the NEM.

Transmission system operational capability depends on having the right people, processes, systems, data, tools and governance for both operational planning and real-time activities. It includes maintaining the system within technical limits, responding to credible and non-credible disturbances, and supporting system restart following a widespread outage.

Why is a framework needed?

Electricity supply and demand must remain balanced in real time, and the power system must remain within secure operating limits. As the generation mix becomes more variable and consumer demand becomes more dynamic through the energy transition, maintaining this balance will require greater flexibility across generation, networks, storage and consumer resources.

Strengthening transmission system operational capability is no longer optional or incremental - it is a prerequisite for maintaining power system security and reliability as the energy transition accelerates.

As operating conditions become more complex, stronger capability can help power system operators identify risks earlier, respond effectively to changing conditions and make better-informed, coordinated decisions. The framework helps focus capability decisions on practical consumer value by supporting use of existing assets, considering operational and technology solutions alongside infrastructure options, and capability uplift where it is expected to provide the greatest value or address the most material risk. In this way, the framework is intended to contribute to lower long-term system costs, reduce reliability and security risks for consumers, and potentially reduce impacts on communities.

What is the framework's purpose?

The TSOCF is a guide to transmission system operations capability planning in the national electricity market. It provides a considered, consistent and transparent view of the transmission system operational capabilities needed to support the energy transition. It is intended to support AEMO and TNSPs to assess, prioritise and progressively improve operational coordination, capability and maturity.

How was the framework developed?

The TSOCF was developed through the joint efforts of AEMO and various industry stakeholders, including transmission network system operators and consumer representatives.


Submissions to the draft Transmission system operational capability framework

TSOCF General FAQ

  • Why is the framework voluntary and what are the associated benefits?

    The TSOCF has been developed as a voluntary framework to provide a common industry reference point without creating new obligations or duplicating existing regulatory processes. This allows AEMO and TNSPs to progressively assess and improve operational capability while preserving flexibility in implementation approaches and investment decisions.

  • For whom is the TSOCF intended? How does the framework accommodate emerging transmission ownership?

    The TSOCF is primarily intended for AEMO and TNSPs that perform transmission system operator (TSO) functions. These are generally the primary TNSP in each jurisdiction, who are usually also delegated some system operator functions by AEMO. The framework is not intended to apply to all transmission asset owners or emerging non-incumbent TNSPs where they do not perform TSO functions. Rather, capability expectations should be considered in the context of the operational responsibilities assigned to the organisation.

    The TSOCF supports greater clarity, consistency and coordination across organisations responsible for transmission system operations, while recognising that responsibilities and capability requirements may differ depending on jurisdictions and operating models.

  • How does the TSOCF affect network service providers or network asset owners that do not perform TSO functions?

    The TSOCF does not identify capability expectations for network service providers or asset owners that do not perform TSO functions. However, these organisations may be indirectly affected where they interact with TSO functions through operational coordination, data exchange, outage planning, SCADA, or shared operational processes. The TSOCF provides a common reference for these interfaces, helping to improve clarity, consistency and coordination while maintaining capability expectations that are proportionate to each organisation’s assigned operational responsibilities.

  • How will the framework be used? Will AEMO determine the appropriate capability maturity targets? Can AEMO provide additional guidance, examples, benchmarks or target states?

    The TSOCF is intended to support capability assessment, planning and prioritisation rather than prescribe specific implementation requirements. TNSPs are expected to undertake their own maturity assessments.

    Feedback received through consultation highlighted the value of additional guidance on maturity expectations, target states and examples of good practice. AEMO has added a worked example to show how the framework can be used in practice. Additional guidance may be developed through future framework iterations if required.

  • Is the framework a one-size-fits-all? How will the TNSPs retain flexibility to develop fit-for-purpose implementation approaches that reflect their unique network circumstances?

    The TSOCF describes the capabilities that may be required to support future transmission system operation, but it does not prescribe how individual organisations must deliver those capabilities. TNSPs retain flexibility to select implementation approaches that best suit their networks, operating environments, technologies and customer needs. Capability uplift decisions remain the responsibility of each organisation.

  • When operational decisions such as changes to limits advice, outage ratings or security tool settings result in different dispatch outcomes, what information should be available to market participants to understand what changed, why it changed, and how long the change applied?

    The TSOCF is not intended to establish new market disclosure requirements.

  • What will be the benefits of the framework to the consumers?

    The TSOCF provides a considered, consistent and transparent view of the transmission system operational capabilities needed to support the energy transition and an increasingly complex operating environment. It is intended to support AEMO and transmission network service providers to assess, prioritise and progressively improve operational coordination, capability and maturity. By supporting the capability to operate the transmission system securely, reliably and efficiently into the future, the framework is ultimately intended to contribute to better outcomes for consumers and communities.

    A new table (“Table 2 Descriptions of primary capability domains” in Section 3) has been added to the TSOCF Overview document to provide additional details with regards to the expected consumer benefits, organised per capability domain.

  • How will the framework be kept relevant and up to date over time? What governance arrangements will ensure the framework remains current and relevant?

    The TSOCF is intended to be a living framework that evolves alongside changes in technology, operating practices and power system conditions. Ongoing engagement with TNSPs, consumers, regulators and other stakeholders will be an important part of maintaining its relevance as a practical and consistent operational guide. Future revisions will allow the framework to adapt to emerging operational challenges and evolving industry needs.

    The framework will also continue to evolve in alignment with broader industry initiatives and reform programs that influence transmission system operations. This includes initiatives such as the National CER Roadmap (including the Transmission-Distribution Coordination program) and other industry workstreams that may reshape operational roles, responsibilities, coordination requirements and capability expectations over time.

  • How does the framework account for the evolving distribution system operator (DSO) role and the shifting of operational responsibilities at the TSO/DSO interface?

    The TSOCF indirectly accounts for the evolving DSO role (sections 2.4 and 5.1 of TSCOF Overview document). It acknowledges that the framework should be reviewed periodically to ensure it remains aligned with the operating environment, emerging power system needs and related policy, regulatory and industry initiatives (such as the Transmission-Distribution Coordination program).

  • What operational responsibilities sit with AEMO vs TNSPs?

    The TSOCF does not change existing operational responsibilities established under energy legislation, including transmission system operation functions delegated by AEMO to TNSPs through formal instruments of delegation agreed between AEMO and the TNSP. The framework is intended to support capability development within those existing roles and responsibilities.

  • How will the framework balance standardisation with flexibility and innovation?

    The TSCOF aims to establish a common language and consistent capability expectations while avoiding prescription of specific technologies, systems or delivery models. This allows individual organisations to pursue innovative and fit-for-purpose solutions while maintaining alignment on the underlying operational outcomes being sought.

  • How will AEMO and industry measure adoption of the framework and determine whether it is delivering meaningful operational capability uplift?

    AEMO will engage with TNSPs and other relevant stakeholders on an ongoing basis to understand how the TSOCF is being used and whether its application is supporting its intended outcomes. AEMO may provide an annual description of the framework’s adoption and application in an appropriate publication, such as the Transition Plan for System Security, informed by ongoing engagement with TNSPs. This may describe how the framework is being used, the extent to which it is supporting operational readiness and coordination, and any emerging capability concerns identified through AEMO’s engagement with TNSPs. Together, these insights will help AEMO and industry assess whether the framework is contributing to meaningful operational capability uplift and identify opportunities to improve the framework over time.

Further information

For more information, please contact [email protected].

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