Transgrid completed the system strength RIT-T process in 2025.

In April 2026, Transgrid notified the AER of an MCC related to an increase in costs and extended delivery timing for synchronous condensers, as well as delayed coal unit retirement dates under AEMO’s Draft 2026 Integrated System Plan Step Change scenario.

In June 2026, the AER published its determination on our proposed actions, which included for Transgrid to complete a streamlined assessment and publish a draft report outlining any changes to the PACR preferred portfolio.

• Draft MCC Assessment report
• Draft MCC Assessment workbook – Step Change scenario
• Draft MCC Assessment workbook – Proponent Advised coal unit retirement dates scenario

The draft report will be open for submissions for one month from the 1 July 2026 to 1 August 2026. Submissions should be emailed to our Regulation team via regulatory.consultation@transgrid.com.au*. In the subject field, please reference ‘Meeting system strength requirements in NSW MCC assessment’.

Transgrid intends to incorporate stakeholder feedback and publish the final report by 24 August 2026, as specified by the AER.

* Transgrid is bound by the Privacy Act 1988 (Cth). In making submissions in response to this consultation process, Transgrid will collect and hold your personal information such as your name, email address, employer and phone number for the purpose of receiving and following up on your submissions. If you do not wish for your submission to be made public, please clearly specify this at the time of lodgement. See Privacy Notice within the Disclaimer for more details.

Transgrid has developed a portfolio of system strength solutions to meet its regulatory obligations and to maximise net market benefits. The net benefits delivered by the project are assessed via the Regulatory Investment Test for Transmission (RIT-T) administered by the Australian Energy Regulator (AER).

The RIT-T is a formal consultation process designed to:

• inform stakeholders of the investment need and proposed options to address it
• test the market for alternative and more efficient solutions
• explain to stakeholders the basis on which the preferred option has been selected.

The RIT-T consultation process involves the publication of three reports, which are available below along with an additional Consultation Report:

• Project Specification Consultation Report (Published December 2022)

As the first step in the RIT-T process, The PSCR details the need to meet system strength requirements in NSW and describes credible options to meet the need, including technical characteristics required of a non-network option.

• Project Assessment Draft Report (Published June 2024)

The PADR provides a detailed assessment of credible options to maintain system strength in NSW, including quantified market benefits and costs, and gives stakeholders the opportunity to review and comment on the analysis before a final preferred option is identified. Submissions received in response to the PSCR were considered when preparing the PADR. 

• Project Assessment Draft Report Supplementary Report (Published October 2024)

This report assessed the potential impacts of developments on the preferred option identified in the PADR and allowed the industry to consult on these developments ahead of the development of the final stage of the RIT-T, the PACR.

• Project Assessment Conclusions Report (Published July 2025)

As the final step in the RIT-T process, the PACR responds to all submissions made for the PADR and PADR Supplementary Report and identifies the overall preferred portfolio option to meet the identified need.

Following the publication of the PACR, the AER received a notice of dispute from the Centre for Independent Studies (CIS) disputing its conclusions. After considering the grounds for the dispute raised by the CIS, the AER determined that, based on the grounds of the dispute, Transgrid will not be required to amend the PACR. Details of the dispute can be found here.

Further details on each stage of the RIT-T are provided further below.

Transgrid has engaged in a consultation process following publication of the PSCR, PADR and PADR Supplementary Report to provide industry and stakeholders with the opportunity to provide feedback on the credible options presented, issues addressed, proposed methodology and preferred option outcomes.