The Australian Renewable Energy Agency (ARENA) is investing up to $15 million in the Australian Energy Market Operator (AEMO) to boost the implementation of AEMO’s Engineering Roadmap. 

The initiative aims to enhance operational capacity for renewable energy generation within the National Electricity Market (NEM).

ARENA's funding is earmarked for several critical areas, including the rapid advancement of operational readiness for substantial changes in the power system over the next two years. 

This should help decrease dependence on fossil-fuel generators for system stability. 

Additionally, the funding will support foundational elements for the energy transition, such as governance frameworks, systems, and processes to facilitate the growing adoption of rooftop solar, batteries, and electric vehicles. 

It will also provide long-term visibility to investors regarding the emerging needs of the power system and opportunities for various technologies to meet these requirements.

ARENA CEO Darren Miller says the project will be key to running a grid increasingly powered by renewable sources. 

“Transitioning to an electricity system based predominantly on wind, solar and storage presents new challenges that we need to be prepared to manage,” Mr Miller said. 

He highlighted AEMO's pivotal role in ensuring a smooth transition while maximising the utility of renewable assets. 

“ARENA is pleased to be working with the market operator to bring forward this important program of work, enabling a grid powered increasingly by renewables,” he said. 

AEMO CEO Daniel Westerman also says the ARENA funding will boost the power system’s readiness for a high renewable future. 

“The Engineering Roadmap seeks to advance operational capability for a high renewable power system, critical as our ageing coal generation fleet retires,” Mr Westerman said. 

He noted that this would facilitate efficient use of renewable resources, mitigate future system security challenges, and lessen reliance on fossil-fuel generation.

“ARENA’s grant funding will accelerate this critical work, enabling the deployment of innovative and timely solutions to support our future power system,” he added.

The Engineering Roadmap is designed to keep the NEM ahead of potential engineering challenges, enabling secure operation with a high share of renewable energy. 

In 2023, AEMO data revealed that renewable energy penetration in the NEM reached a new peak of 72.1 per cent. 

As the NEM moves towards greater reliance on inverter-based renewable resources like wind and solar, the requirements for maintaining grid security and reliability are evolving.