The Australian Energy Market Operator (AEMO) has released its Engineering Roadmap FY2026 Priority Actions report, which aims to prepare Australia’s main electricity grids for operation with higher concentrations of renewable energy.
The report outlines priority actions for the next 12 months to support the transition to a low emissions power system in the National Electricity Market (NEM) and Western Australia’s South-West Interconnected System (SWIS).
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AEMO executive general manager system design Merryn York said there were 29 priority actions for the year ahead to facilitate even higher renewable and battery storage participation in Australia’s power systems, peaking last year at 75.6% in the NEM and 85.1% in the SWIS.
“A key priority over the next 12 months will involve advancing understanding of future technology capabilities, including grid-forming batteries to support power system security,” York said.
“Other priorities include enabling further integration of consumer energy resources (CER), uplifting AEMO’s operational capabilities, and preparing for transition points such as coal retirements.”
The report also outlines the progress AEMO has made against its FY2025 Priority Actions, with more than 33 out of 37 activities delivered for the NEM, including:
- Supporting establishment of industry-wide governance to support CER integration and contribution to system security;
- Providing technical guidance on grid-forming batteries, including assessing synthetic inertia contributions;
- Analysis of power system operation with reduced coal-fired generation;
- Contributing technical advice to the Reliability Panel’s review of the System Restart Standard;
- Publication of the NEM Frequency Control Landscape report, which provides an assessment of frequency control systems in the NEM; and
- Implementing new minimum system load frameworks in Victoria and South Australia market regions.
These FY2025 NEM activities were supported by a $15 million Australian Renewable Energy Agency (ARENA) grant from January 1, 2024 to June 30, 2025.
For the SWIS, the inaugural SWIS Engineering Roadmap was launched in August 2024 to drive engineering initiatives for the power system’s transition.
Throughout FY2025, a highly targeted approached was taken in the SWIS, with a focus on contributing analysis and feedback to critical reforms progressing under the West Australian Government’s Power System Security and Reliability Standards Review, the Frequency Control Essential System Services (FCESS) Cost Review—Stage 2, and Operational Forecasting Review.
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Key actions in the SWIS over the past 12 months have included advancing distributed energy resource capabilities, assessing system strength requirements, reviewing the Rate of Change of Frequency safe limit, and implementing minimum system load services.
As the energy transition accelerates, AEMO is seeking to streamline communications for stakeholders with a combined approach for Engineering Roadmap, Transition Plan for System Security, and system security planning publications in 2026.
