PIAC responded to the AEMC’s review of the South Australia black system event of 2016. The review considers how the current Rules framework could be amended to manage emerging risks to power system security such as the circumstances leading up to the black system event in 2016.
The AEMC identifies three options for enhancing power system resilience. We support the Stronger and Smarter categories and do not support including the Interconnected category. We consider the Stronger and Smarter categories are outcome-focussed whereas the Interconnector category is solution-focussed, and do not consider it logical or prudent to pursue greater interconnection for its own sake. Further, increasing interconnection may have limiting long-term outcomes or weaken resilience of the system by making it harder to island or isolate regions or by suppressing prices.
Therefore we recommend the Interconnected category be removed from the model and the AEMC continue with the Stronger and Smarter categories.
PIAC supports extending the current system security framework to manage risks from indistinct events, and the creation of both standing and operation categories within indistinct protected events.
PIAC also supports expanding the existing Power System Frequency Risk Review to be the General Power System Risk Review (GPSRR) and make a number of recommendations for developing the necessary guidelines and governance arrangements for the GPSRR. This will improve the quality of information available to market participants, regulatory bodies and other stakeholders.