Transgrid’s Project Assessment Conclusions Report for System Strength assessed more than 100 individual solutions aimed at helping to meet its system strength obligations under the National Electricity Rules.
The work reflects Transgrid’s obligation to deliver system strength services to the NSW power system to meet standards set by AEMO from 2 December 2025 (clause S5.1.14).
The Regulatory Investment Test for Transmission (RIT-T) was applied to examine options and solutions and the conclusions report is the final stage :
“This RIT-T examines network and non-network solutions to comply with system strength requirements and to maximise net economic benefits to the National Electricity Market (NEM) and ultimately to consumers.”
Portfolios of solutions assessed to identify the optimal
Five portfolio options were assessed in the project and are covered in the report.
Portfolio options gather solutions which include new synchronous condensers, upgrades to synchronous machines and grid-forming BESS
Differences in portfolios reflect variation in the assumed timing (availability) of synchronous condensers.
Portfolio 1 has the smallest margin of error to manage uncertain future conditions. Portfolio 2 adds robustness by bringing forward one synchronous condenser required in 2031/32 under portfolio option 1, to 2029/30.
Table 1 of the report indicates we could see 10 synchronous condensers in NSW by 2030, in addition to more than 4 GW of grid forming BESS.
The report identifies an optimal portfolio option
“Portfolio option 2 is expected to deliver the best outcome of the three credible portfolio options assessed under this RIT-T due to its greater resilience to different states of the future world (in comparison to portfolio option 1) and materially higher net market benefits than portfolio option 3.”
Although portfolio options 4 and 5 would bring benefits that make them preferred, they are not currently credible. They assume synchronous condensers will be available in 2027/28 (optimal timing) yet this is viewed as not currently credible due due to anticipated procurement lead times.
Gas and Hydro to see more ‘re-dispatch’
“‘Re-dispatch’ (increase in operating hours compared to typical market operations) of synchronous generators is a critical part of all portfolio options to meet the minimum level of system strength before synchronous condensers are available.”
The modelling indicates that, primarily, gas and hydro units, but some coal too, will see more hours of operation than typical to support system strength before new synchronous condensers are operational.
The report for NSW follows a similar release for QLD
As noted on LinkedIn, this report for the New South Wales region follows one for Queensland earlier – Powerlink’s report on 30 June 2025.
Hear more about Transgrid’s conclusions report
An industry briefing will be held on 18th July 2025; details on Transgrid’s project page.
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