Provision of Minimum System Load Transitional Services - NEM wide

On 27 November 2025, AEMO published the following Statements of Need (SON) in accordance with clause 3.11.12(a) of the National Electricity Rules to acquire Minimum System Load (MSL) Transitional Services in South Australia, Victoria, New South Wales and Queensland:

  • Statement of Need – MSL Transitional Service – Type 1; and
  • Statement of Need – MSL Transitional Services – Type 2.

Under the Australian Energy Market Commission’s Improving Security Frameworks rule change (National Electricity Rule 3.11.11(b)), AEMO can procure transitional services where:

“1. the services are required for power system security and cannot otherwise be provided by an inertia network service, a system strength service, a market ancillary service or a NMAS; or

2. the services are acquired for the purpose of trialing new technologies, or a new application of existing technologies, for the management of power system security in a low- or zero-emissions power system where the particular application of the technology employed through the transitional services has not been used to provide services to manage power system security prior to 28 March 2024.”

The transitional services framework, guidelines and objectives are outlined in AEMO’s Transition Plan for System Security, a plan to maintain power system security through the energy transition to a low- or zero-emissions power system.

Between now and February 2026, AEMO is seeking to engage with parties who are currently able to, plan to be able to, or are interested in providing MSL Transitional Services.

The procurement of MSL Transitional Services by AEMO is to address power system security risks arising during MSL conditions and enable improved management by AEMO of minimum system load conditions.

AEMO will initially conduct a market engagement process and issue an Invitation for Expressions of Interest (EOI) seeking responses from potential MSL Transitional Services providers. The EOI process will incorporate both Type 1 and Type 2 MSL Transitional Services security needs.

Following application of the principles in the Transitional Services Guidelines, AEMO will assess responses to the Invitation for EOI to determine the outcome of the EOI process and the most appropriate and efficient next procurement strategy. As discussed in the relevant SON (refer below links), AEMO may seek to procure MSL Transitional Services using either of the following processes:

  • Conduct a competitive tender, where multiple service providers may be able to meet the security need, or the level of service offered is likely to exceed the need; or
  • Issue direct Requests for Offer (RFOs), where AEMO determines this process is more appropriate, for example:
    • where sharing details of a new technology or application may pose a risk to the negotiation process and discourage future innovation; or
    • in cases involving clearly identified service providers or time-sensitive needs.

Following the completion of evaluation of EOIs, AEMO has now determined to bifurcate the procurement for MSL Transitional Services into the following two pathways:

  • Type 1 MSL Transitional Services via an open and competitive Invitation to Tender (ITT); and
  • Type 2 MSL Transitional Services via an open and competitive Invitation to Tender (ITT)

AEMO extends its appreciation to those that participated in the EOI and acknowledges their interest and efforts to date. Furthermore, AEMO encourages and welcomes their continued interest, and that of others, in becoming involved in the next stage of the procurements.

Type 1 MSL Transitional Services procurement

AEMO now issues an Invitation to Tender (ITT) for the Provision of MSL Type 1 Transitional Services – NEM wide via an open competitive process (refer below links to access the ITT document and associated draft MSL Transitional Services Agreement).

Those interested in submitting a response to the ITT should note that AEMO has determined to limit the technology type to Battery Energy Storage Systems (BESS). Other technology types may be addressed through a separate ITT at a later date.

Tenderers are advised:

  • The Closing Date for the submission of Tenders has been extended to 5:00pm AEDT on Monday, 18 May 2026;
  • An MS Word version of the Invitation to Tender (ITT) is now available, titled “MSL Type 1 Transitional Services ITT.docx” for download under the heading “Invitation to Tender Type 1”;
  • A Questions and Answers document is available (located below under the heading “Additional Information”, titled “Q&As – MSL Type 1 Transitional Services – 5May2026” in response to questions raised in accordance with section B.12 of the ITT and by those whose who attended the Type 1 MSL Transitional Services Industry Briefing held on Tuesday, 21 April 2026; and
  • A copy of the presentation used during the Industry Briefing conducted on Tuesday, 21 April 2026, supporting the MSL Type 1 Transitional Services ITT (located below under the heading “Additional Information”, titled “MSL Type 1 – Industry Briefing 21 April 2026”.

AEMO’s indicative plan for the procurement of Type 1 MSL Transitional Service is as follows:

Activity Timeline
Market engagement (EOI)  December 2025 – February 2026 
Assessment of EOI responses  February – March 2026 
Type 1 – Competitive Invitation to Tender (ITT) 10 April to 18 May 2026
Type 1 – AEMO assessment of Tenders and contract negotiations May – July 2026
Type 1 – Contracts awarded July – August 2026
Type 1 – Contracts start 1 September 2026 onwards
 

Type 2 MSL Transitional Services procurement

On 24 April 2026, AEMO issued an Invitation to Tender (ITT) for the Provision of MSL Type 2 Transitional Services via an open competitive process (refer below links to access the ITT document).

AEMO’s indicative plan for the procurement of Type 2 MSL Transitional Services is as follows:

Activity Timeline
Market engagement (EOI) December 2025 – February 2026
Assessment of EOI responses February – March 2026
Type 2 – Competitive Invitation to Tender (ITT) 24 April to 5 June 2026
Type 2 – AEMO assessment of Tenders and contract negotiations June – July 2026
Type 2 – Contracts award 14 July 2026 onwards
Type 2 – Contracts start 14 September 2026 onwards

Further information relating to Type 2 MSL Transitional Services can be sought by contacting email address, [email protected] or visit AEMO | Minimum System Load (MSL) - Type 2 transitional services.


Industry Briefing session

Type 1

Additionally, AEMO will host a one-hour on-line Industry Briefing session on Tuesday, 21 April 2026 (9:00am AEST), covering the ITT and addressing common questions.

Please contact AEMO at [email protected] to register to attend this Industry briefing session.

Type 2

AEMO will host a one-hour on-line Industry Briefing session on Thursday, 7 May 2026 (10:00am AEST), covering the recent release of the ITT for Minimum System Load (MSL) Type 2 Transitional Services.

Please click here to register to attend this Industry Briefing session.

AEMO’s first procurement for MSL Transitional Services (Type 1) in Victoria and South Australia closed in 2025. Information relating to that procurement is located here:

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