National Electricity Amendment (Efficient Provision of Inertia) Rule 2025

AGL's submission in response to AEMC’s Directions Paper notes that a standalone inertia spot market is its preferred approach, as it is likely that it would effectively incentivise inertia without conflating with other services. While maintaining a neutral stance on the reformed 1-second FCAS market, AGL expressed openness to considering it if it can be designed and implemented effectively. In the submission, concerns were raised about AEMC’s proposal requiring all inertia providers to deliver inertia at 0 MW, as this could lead to inadequate valuation of inertia and the potential exit of existing generators from the market. This reduction in inertia availability could increase costs compared to keeping units online.

Read the full submission here.