ARENA injects $15m into National Electricity Market transition

This will enhance the power system's readiness for high levels of clean energy operation.

The Australian Renewable Energy Agency (ARENA) is providing up to $15m to the Australian Energy Market Operator (AEMO) to support the implementation of the latter’s Engineering Roadmap, which aims to enhance operational capacity for renewable generation in the National Electricity Market (NEM).

In a statement, ARENA said the funding will enable work on accelerating operational readiness for major power system changes in the next two years, foundational enablers for the energy transition, and providing long-range visibility to investors on the emerging requirements of the power system and opportunities for different technologies to meet these requirements.

AEMO data shows that the penetration of renewables in the NEM hit a new record of 72.1% in 2023.

As the NEM transitions to a higher share of renewable electricity, the requirements for managing the grid securely and reliably continue to change. The Engineering Roadmap seeks to prepare for the challenges associated with this and ensure that the risks are appropriately managed, ARENA said. 

The agency noted that the funding “will help AEMO bring forward delivery of this critical program of work, helping to remove barriers to the increasing reliance on renewable electricity.”