Data Centres reforms
Operational Integration and Visibility of Large Inverter-Based Loads
On 21 July 2026, AEMO submitted the Operational integration and visibility of large inverter-based loads rule change request (OIV rule) to the Australian Energy Market Commission (AEMC) to amend the National Electricity Rules.
The rule change request responds to the increasing scale and operational significance of large inverter-based loads, including data centres, hydrogen electrolysers and other power electronics driven facilities. AEMO considers that clearer and more consistent operational visibility, monitoring, communication and information-sharing arrangements under the National Electricity Rules would support efficient market operation, secure and reliable power system management, and ultimately the interests of consumers including large inverter-based loads themselves.
The request is outcomes focused and principles based, with the intention to facilitate a constructive consultation on proportionate, flexible and technology-neutral regulatory arrangements for large inverter-based loads in alignment with related reforms across the National Electricity Market.
Related correspondence
At the Energy and Climate Ministerial Council (ECMC) meeting on 28 July 2026, the AEMC advised Energy Ministers on regulatory options for data centres, including the proposal that data centres in the NEM be required to register as market participants. The ECMC agreed to progress this advice, with Queensland and the Northen Territory opposing.
To that effect, on 10 September 2026, Australian Government Minister for Climate Change and Energy, the Hon Chris Bowen MP, wrote to AEMO to request that AEMO work closely with the AEMC as it progresses the OIV rule change process. The letter also noted that Minister Bowen had written to the AEMC requesting they consider whether the OIV rule change process could also support the ECMC reform objective regarding market participation.
In response, AEMO wrote to Minister Bowen noting that it is working with the AEMC, market bodies, governments, network service providers, large load proponents including data centres and other stakeholders over the course of the rule change process.