AEMC Chair Anna Collyer highlighted the importance of these updates for Australia’s energy transition. She stated: “This is the most significant modernization of the NEM technical connections standards since 2018, coming at a critical time when the pace of connections needs to accelerate dramatically to meet Australia’s renewable energy targets.” She added: “With renewable energy projected to triple by 2030 and utility-scale batteries to increase fivefold in the same period, these reforms will help reduce connection bottlenecks while maintaining system security.”
The first reform package focuses on grid connections, applying to projects that have not received a network service provider (NSP) connection enquiry response by August 21, 2025. Projects in the application process can opt to adopt some or all of the new standards. These updates refine technical requirements for generators, integrated resource systems, synchronous condensers, and high-voltage direct current (HVDC) links. The reforms aim to streamline negotiations, support inverter-based resources like solar, wind, and batteries, and ensure consistency by applying standards based on plant type rather than registration status. This approach eliminates discrepancies, such as varying requirements for synchronous condensers operated by different entities. The Northern Territory is exempt from these changes, as the final rule does not amend its National Electricity Rules.
The second reform package addresses the growing energy needs of large-scale electricity users, particularly AI-driven data centers. Collyer noted: “Package 2 proposes new standards to ensure these facilities can respond appropriately during power system disturbances and don’t inadvertently make problems worse during system events.” The AEMC cited a U.S. incident where 60 data centers, consuming 1,500 MW, disconnected simultaneously during a grid disturbance, highlighting the need for robust standards to prevent similar issues in Australia.
These reforms aim to facilitate Australia’s shift toward renewable energy while ensuring grid stability. The AEMC is seeking stakeholder feedback on the second package by June 19, 2025, to refine standards for high-energy facilities. By addressing connection challenges and supporting diverse energy resources, the reforms contribute to a more reliable and sustainable energy market.
