Australian Energy Market Commission (AEMC) Chair Anna Collyer said the paper examines whether there could be value in complementary ways to secure inertia services.
“Our analysis examines potential benefits of procuring inertia in operational timeframes, which could complement our existing framework,” Ms Collyer said.
- The paper progresses the AEMC’s assessment of the proposed introduction of operational procurement of inertia
- The AEMC proposes that while minimum levels of inertia are best met by long term procurement, there is merit in exploring further whether operational procurement of additional levels could potentially help reduce system costs and support efficient dispatch.
The analysis indicates there may be economic benefits in procuring additional inertia in real-time.
However, the Commission emphasises that further investigation of technical feasibility, implementation considerations and costs is needed before determining the most appropriate approach.
The Directions Paper identifies several key areas requiring further examination, including:
- The interaction between any new procurement mechanism and existing frameworks
- Technical requirements and capabilities
- Implementation and operational considerations
- Costs and timing of potential reforms.
“While our initial economic assessment shows potential benefits, we need to carefully examine the technical and practical considerations to determine the path that provides the best outcomes for consumers,” Ms Collyer said.
The AEMC is seeking stakeholder feedback on the analysis and considerations outlined in the Directions Paper by 5 February 2025. This input will inform the draft determination, expected in June 2025.
For more information and to access the directions paper, please visit the Efficient provision of inertia project webpage.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.