Australia’s power grid operator, the Australian Energy Market Operator (AEMO) has released its 2025 Transition Plan for System Security, outlining how Australia’s National Electricity Market (NEM) will maintain stability during the shift from coal to renewables, storage, and gas over the next decade.
With half of the remaining coal fleet expected to retire by 2035, the NEM faces challenges in maintaining system strength, inertia, and voltage control. Renewables now supply over 40% of NEM demand, necessitating solutions like synchronous condensers and grid-forming inverters to replace coal’s system security services.
AEMO highlights the need for investments for synchronous condensers, storage, and innovative technologies like flywheel-equipped condensers and hybrid gas turbines. Collaboration among TNSPs, governments, and market participants will also be crucial to deliver these investments on time.