11TH AUGUST 2016


New sources of electricity like wind and solar power are changing the way Australia's power system works.  

The Australian Energy Market Commission has announced a review on whether wholesale energy market frameworks are suitable to complement increasing volumes of renewable energy and to maintain power system security as the industry transforms.

  • The System Security Market Frameworks Review will address the need for possible changes to market arrangements that lead to more efficient outcomes for energy consumers while delivering a secure operating system.
  • Challenges in maintaining power system security are emerging because of the physics of maintaining technical generation parameters like voltage and grid frequency.
  • Conventional electricity generation, like hydro, coal and gas, operate with large spinning turbines that are synchronised to the frequency of the grid. These generators  support the stability of the power system by working together to maintain a consistent operating frequency.
  • Less conventional forms of electricity generators, such as wind and rooftop solar, are not synchronised to the grid and are therefore limited in their ability to dampen rapid changes in frequency or respond to sudden large changes in electricity supply or consumption.