The Australian Energy Market Operator (AEMO) is calling for "emergency backstop" powers to manage the surging output from more than four million rooftop solar systems across the country.
AEMO warns that without such measures, the grid's safety and stability could be at risk as solar output increasingly displaces traditional generation sources critical for grid stability.
AEMO's latest report highlights the growing dominance of small-scale solar, which sometimes meets up to half of the electricity demand in the National Electricity Market (NEM) and could rise to as much as 90% during certain periods in coming years.
The proposed powers would allow the network operator to reduce or switch off rooftop solar systems during extreme circumstances to maintain grid security. These measures would be applied only as a last resort when all other options have been exhausted.
While some states, including South Australia, Western Australia, Victoria and parts of Queensland, already have such capabilities, AEMO seeks nationwide implementation by next year.
The operator emphasised that these interventions would remain infrequent but were vital to ensuring reliable electricity supply.
“If sufficient backstop capability is not available, the NEM may be operating insecure for extended periods,” AEMO noted.
Gas supply pressures intensify
Renewable energy is increasingly providing more electricity to Australia’s east coast. However, during periods of unfavourable weather when renewable energy can’t fully meet demand, the region relies on gas for electricity generation to ensure grid stability and prevent future price rises.
AEMO also warned that gas supplies must be carefully managed ahead of potential supply constraints, especially in Victoria, the most gas-dependent state.
Michael Gatt, AEMO’s executive general manager of operations, said, “Gas supply levels need to be carefully managed if used to support peak electricity demand periods on the east coast.”
The report underscores the urgency of balancing solar growth with reliable backup options to safeguard energy security and affordability.