Enhancing System Restart Preparedness: Draft Determination Review by the Reliability Panel (AEMC)

In an evolving energy landscape marked by the decline of coal-powered generation and the rise of renewables, enhancing system restart capabilities is pivotal for Australian businesses. The Reliability Panel is a specialist body that is part of the Australian Energy Market Commission (AEMC). Its main function is to monitor and report on the security and reliability of Australia’s national electricity system, known as the National Electricity Market (NEM).

The Reliability Panel has recently published a draft determination aimed at revising the System Restart Standard (SRS) to better equip the nation’s electricity market for such transitions. This strategic move spells improvements for businesses ranging from small and medium enterprises (SMEs) to commercial and industrial (C&I) entities across Australia.

Understanding System Restart Ancillary Services (SRAS)

System Restart Ancillary Services (SRAS) are fundamental to the energy market. In the words of Rainer Korte, Chair of the Reliability Panel, SRAS are pivotal in “helping to re-energise the power system in the unlikely event of a major supply disruption or ‘black system event’.” Essentially, SRAS operate as the jumper cables that restart and gradually rejuvenate the power system, ensuring electricity once again flows to homes and businesses.

The Importance of SRAS for Businesses

For SMEs and C&I entities, uninterrupted power is critical. Any prolonged disruption impacts not just productivity but can inflict financial losses. Therefore, the proposed updates to SRAS procurement reflect a proactive strategy to mitigate these risks.

Proposed Changes to the System Restart Standard

The draft determination introduces significant proposals for SRAS, aiming for greater flexibility and adaptation to the changing energy mix. It suggests enabling the Australian Energy Market Operator (AEMO) to procure SRAS to:

• Form one or more restoration islands in an electrical subnetwork within two hours,
• Restore supply in each electrical subnetwork to meet 50% of the forecast average annual underlying demand within eight hours.

These proposals address previous recommendations in AEMO’s System Restart Technical Advice report from June, acknowledging the economic value of reinforcing system restoration capabilities to shield against extended power outages.

Impacts on Sensitive Industries

The recommendations highlight considerations for sensitive industries such as aluminium smelters, whose production processes are particularly vulnerable to power disruptions. By securing a reliable power supply, these industries can maintain operations even amidst significant energy transitions.

Future Directions and Stakeholder Engagement

The Reliability Panel is not just stopping at draft recommendations. Future work is crucial for bolstering system restart preparedness. As part of this engagement, an online forum is scheduled for 22 September 2025 for stakeholders to discuss these drafts. Business owners and stakeholders can register to ensure their voices are heard and contribute to shaping a resilient energy framework.

Comments and submissions regarding the draft determination are welcomed until 16 October 2025. This is a valuable opportunity for businesses to express their unique needs and influence future energy policy.

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