On December 12th, the AEMC released a request for stakeholder input as it commenced its System Restart panel review.
The panel are looking to review the challenges, especially around:
- The increasing reliance on the lowered availability of System Restart Ancillary Services (SRAS) and scarcity of that capability from new transmission-connected generators.
- The rising system restoration risks are coming about within areas of large penetration of distribution-connected PV generation.
The framework is being assessed in two stages: the first comprises a review to assess whether the current regulatory framework suits the evolving nature of the grid under the AEMO ISP, and the second revises the requirements around system restarts based on the first stage findings, considering the risks associated with major supply disruption risks and SRAR availability and costs.
In the event of a significant loss of generation and supply to consumer load, the current arrangements allow for invoking the SRAS procedures known as black start capability. This capability is usually made up of smaller, quick-to-start, smaller-generation units that can assist historically large baseload units in coming online.
Overall, the absence of this generation would primarily become problematic during a large-scale system failure, similar to the issues experienced with Callide. However, as we transition to a grid with more variable generation and fewer synchronous units, such disturbances could become more frequent. This trend may persist until sufficient storage capacity is available to stabilise the system.
Submissions close on 30/01/25, and it is likely that a significant number of differing opinions will emerge as businesses advocate for ensuring payments are available for these events. This could also strengthen the arguments being presented, following the ESB Post 25 assessment, for the introduction of a capacity mechanism for generators on the NEM.