System strength involves a range of factors to keep the energy system stable and capable of consistently delivering energy safely. Maintaining system strength through the transition from traditional, large generation technology to distributed renewable technology involves new challenges. But as battery and inverter-based technology improves, there are also opportunities to address system strength more efficiently.
That’s why we encouraged close scrutiny of Transgrid’s System Strength Project (hybrid) proposal 2026-31 in our response to the Australian Energy Regulator’s (AER) consultation on this project. Where the proposed solutions may lock in expensive and potentially unnecessary long-term investments, we support the AER to do all it can to ensure Transgrid acts prudently and efficiently to minimise costs to NSW households.
What’s next?
The AER will make its final determination by 21 October 2026, outlining the costs that Transgrid can recover for the project. We will continue to advocate for a more flexible approach to maintaining system strength, drawing on the potentially cheaper solutions offered by battery storage systems.
