The Australian Energy Market Operator (AEMO) has advanced its program to procure 'transitional services' to support the transition of the National Electricity Market to a low emissions power system.
Under the ‘Improving Security Frameworks’ (ISF) rule change introduced last year, AEMO can now procure new types of security services (Type 1) that can’t be provided through existing frameworks, and trial system security services (Type 2) from new technologies, or new applications of existing technologies.
This new capability complements AEMO’s existing responsibility to publish annual system security reports, triggering transmission businesses to procure solutions, governed by the Australian Energy Regulator. Please find an overview of the 2024 system security reports.
AEMO Executive General Manager - System Design, Nicola Falcon, said that having established the process, AEMO has issued the first suite of Type 2 trials to industry.
“Our immediate priority has been standing up the program, with clear governance and prioritisation frameworks, setting us up to maximise the benefits of this new capability whilst ensuring consumer interests are maintained at all times,” Ms Falcon said.
“Having done this groundwork, and recognising the critical importance of proving out new technologies and novel approaches, I am really excited to announce these first four transitional service trials.
“These trials will help bridge the gap between technical research and implementation, allowing industry to gain insights in how new technologies and novel applications of existing technologies can best support secure operation in the future,” she said.
Each trial has a ‘statement of need’ setting out the objective, technical requirements, and procurement mechanism for each service trial, in line with the Transitional Services and Procurement Objectives, defined under the National Electricity Rules and Transitional Services Guideline.
“The first suite of trials focuses on deepening AEMO’s understanding of how the power system can remain secure and resilient as it transitions towards periods with no synchronous generation online,” Ms Falcon said.
“The outcome of these trials will help inform operational practices and market frameworks to ensure the NEM can operate in a system increasingly dominated by inverter-based resources,” she said.
Following publication, AEMO is now commencing procurement processes for the trials. This phase includes engaging with market to identify potential transitional service providers followed by a direct request for offer to deliver the trials.
AEMO is hosting a webinar 10:30am to 11:30am (AEDT) Friday 7 November 2025 for interested parties to learn more on the type 2 transitional services.
Trials
| Trial | Objective |
|---|---|
| Black start capability from inverter-based resources | Exploring whether advanced inverters can provide black start capability, traditionally only delivered by synchronous plant. |
| Zero synchronous generation | Operating part(s) of the system with no synchronous generation online, relying instead on advanced inverter controls and other assets (e.g. synchronous condensers) to provide reference signals for frequency, and voltage. This would be a world-first demonstration of zero synchronous generation in an islanded system larger than 100 MW. |
| Grid-forming inverter protection-quality fault current | Demonstrating how grid-forming inverters can contribute fault current to reliably support the operation of essential grid protection systems. |
| System restart under high distributed PV conditions | Developing automated management capabilities for distributed PV to support system restoration following a blackout. |
In addition to the transitional services trials released, in late 2024, AEMO published a statement of need to procure new types of security services (Type 1) from battery energy storage systems (BESS) to manage minimum system load events in Victoria and South Australia ahead of spring 2025.
AEMO has signed two Transitional Services - Type 1 contracts with BESS owners in Victoria with a charging capacity of 313.75 megawatt hours. Negotiations were undertaken with BESS owners in South Australia; however, no suitable agreements were reached.
“Having BESS contracted importantly reduces the need for market intervention to manage power system security during minimum system load events – providing participants with more certainty on cost recovery – and reduces the need for any last-resort action to reduce or curtail rooftop solar,” Ms Falcon said.
In early December, AEMO will publish its second Transition Plan for System Security report, which this year will combine annual system security reports on inertia, system strength, and network support and control ancillary services.
“We’re combining these reports into one in response to stakeholder feedback,” Ms Falcon said.
“The upcoming Transition Plan for System Security will outline key opportunities for collaborative action on system security, detail on technological changes in the NEM, and regional plans to support targeted action and co-investment to support the transition,” she said.
As part of the December report release, AEMO will also outline how it intends to engage on technical matters and the development future Transition Plan for System Security reports.
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