Yesterday the AEMC released their final determination for a rule change to the NER as part of the ongoing attempt to improve the processes for the new connections to the NEM. These changes will come into effect from 21 August 2025.
While the specifics of the final determination will consideration, its high-level intent is to better accommodate the fundamental shift in the operation of the NEM, including its generation mix towards more inverter-based machines, as well as the volumes and types of projects that are currently seeking connections.
On this latter point, according to AEMO figures there are currently more than 300 renewable energy projects >100MW at different stages of development, with more coming. The projects are also getting larger, with 77 projects being >500MW in size (excluding offshore wind), and 22 of those >1GW. For offshore wind, there are 21 projects >1GW. Also, to achieve better performance and commercial outcomes an increasing number of projects are being developed as hybrids, combining generation (wind and/or solar), storage, and in some case embedded loads behind common or adjacent connection points.
The AEMC has recognised that the development of these projects and broader policy outcomes will be hamstrung if issues associated with the time, resources, and processes required to assess and approve these projects are not dealt with, and that the current processes are still very much focussed on old NEM paradigms.
While the acquisition of sufficient power engineers by AEMO and TNSPs to support NER connection processes will be a key element for future success, the new determination recognises that the current access standards are not fit for purpose or able to be applied consistently across equivalent projects – for example, a synchronous condenser being implemented by a TNSP versus one developed by a party that is a registered generator.
The rule change shifts focus from the project Applicant’s registration category to the specific technology type being implemented in the project, and as a result the access standards have been split and amended into targeted categories for generator, integrated resource and synchronous condenser system (Schedule 5.2), load (Schedule 5.3), and HVDC (Schedule 5.4) projects.
While more detailed analysis on this change will be opined in the coming weeks, from a review of early opinions it appears that this change will help to at least resolve and/or improve on some of the numerous issues facing the connection of projects, and we here at McCafferty Legal and McCafferty Consulting look forward to working with our current and future clients to work through these and future changes.
https://www.aemc.gov.au/rule-changes/improving-nem-access-standards-package-1
