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Power system security problems:b involving the inability of the system to operate within the technical limits of the system, ∙ Network capacity – the availability of electricity in the right spots to such as voltage, or frequency standards. [...] happens, the Australian Energy Market Operator (AEMO) typically ∙ Right type: not all capacity is the same – the grid needs to be requires ‘load shedding’, which is a manual shutdown of power composed of the right type of capacity to deal with fluctuations in to parts of the electricity network (usually on a rotational basis) to demand (over the course of a day or between seasons) and, in the brin. [...] Grattan Institute 2024 12 Keeping the lights on Network outages, especially on the distribution network, have caused In the short term, if the market is not able to coordinate the entry of the vast majority of power outages (Figure 1.5 on the preceding renewables and the exit of coal, a trade-off between emissions and page). [...] for all consumers.36 The Reliability Standard is the modelled ‘optimal’ level of 2.3 The nature of resource adequacy risks is changing resource adequacy that best balances the goals of reliability and affordability, based on values of customer reliability as determined The nature of resource adequacy risks in the NEM is changing with by surveys run by the Australian Energy Regulator.b the greater. [...] The current approach may not be the best to manage changing risks If the Reliability Standard and the market’s responses to potential The NEM manages reliability risk via the Reliability Standard, which breaches of the standard do not reflect the value consumers put on is a system-wide average for the number of minutes of power outages reliability, it becomes less likely to lead to the right level.