Submission to AEMC Efficient provision of inertia rule change

PIAC made a submission to the Australian Energy Market Commission’s (AEMC) Efficient provision of inertia rule change request.

In this submission we recommended that minimum inertia requirements be managed and procured by AEMO rather than transmission businesses.

PIAC argued that levying energy market pool fees on all market participants currently represents the most benefit-reflective means to recover costs associated with the provision of inertia. As higher levels of distributed energy resources and smarter electronics are integrated into the grid it will become more efficient and fairer to recover costs from benefitting generators and large users.