The review is also aimed at maintaining power system security as the system transforms in order to absorb increasing amounts of renewable power. New sources of electricity like wind and solar power are changing the way Australia’s power system works and the System Security Market Frameworks Review will address the need for possible changes to market arrangements. This in turn will lead to more efficient outcomes for energy consumers while delivering a secure operating system.
The impact of renewable energy on system security was highlighted in the AEMC’s Strategic Priorities for Market Development as an important focus in the coming years and this review has been initiated by the Commission to continue its work in this area.
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.
This review will provide recommendations to the COAG Energy Council with an interim report to the nation’s energy ministers due by the end of 2016. These recommendations will address changes required to the regulatory framework to meet power system security challenges in the National Electricity Market caused by increasing levels of non-synchronous generation.
The Review will consider a range of technical issues including the minimum level of inertia required to effectively stabilise the power system, allowing it to cope with rapid changes in frequency due to significant movements in supply and demand. Other aspects include fast frequency response and localised impacts on fault levels within certain areas of the electricity grid. These are just some of the issues which need to be considered holistically.
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