Integrating Price Responsive Resources into the NEM Frequently Asked Questions

As of April 2026, AEMO has proposed to temporarily pause and reset the delivery path for the IPRR reform. This recommendation follows detailed implementation planning, which identified delivery risks that would make the current approach high‑risk and high‑cost if progressed.

The objective of the proposed reset is to work with industry on a more practical, staged delivery path that improves certainty and reduces disruption for both market participants and AEMO.

AEMO has encountered sustained challenges that have prevented the project from returning to a stable, green delivery plan. These include:

• Reform congestion and resource contention, particularly in NEM scheduling, settlements, and technical subject‑matter expertise
• Higher-than-anticipated solution complexity, including registration, bidding, dispatch, and supporting IT platforms
• Increased delivery cost and risk, including uncertainty in achieving the rule‑mandated go‑live date.

Given these factors, continuing on the original path would have required maintaining an amber or red plan with ongoing uncertainty for industry.

• Consultation on the new required market Procedures and Guidelines under the IPRR rule, which were finalised as of 27 November 2025 (Voluntarily Scheduled Resources (VSR) Guidelines, Price Responsive Reporting Guidelines and the VSR Incentive Mechanism Procedure). These documents may require updating as part of the reset and would be scheduled to align with the revised and staged delivery pathway.
• Consultation on updates to existing procedures under the IPRR rule is paused and will be rescheduled to align with the revised and staged delivery path.
• The VSR Incentive Mechanism (VIM) tender is being deferred. Revised timing will be proposed as part of the reset and staged delivery path.
• The proposed reset of IPRR to be determined with industry, includes a practical, staged delivery path for implementation of dispatch mode.

• Unscheduled Price Responsive Resources (UPRR) reporting continues unchanged, and AEMO published the first quarterly UPRR reporting dashboard in April 2026, available here.

The reset involves stepping back from the current plan for implementing IPRR and:

• reassessing sequencing and dependencies
• exploring staged implementation options
• engaging with industry on a practical and achievable path forward
• progressing any required rule changes through the Australian Energy Market Commission (AEMC).

A staged delivery path means implementing IPRR functionality progressively, starting with lower‑risk components and increasing scope over time as capacity and readiness allow.

This approach aims to:

• reduce delivery risk
• improve certainty for participants
• enable learning and adjustment over time, including better alignment with other reforms
• ease reform congestion.

Reform congestion refers to the impact of multiple concurrent reforms competing for the same skills, systems and testing environments across both AEMO and market participants. Key overlaps include Project EnergyConnect – Market Integration (PEC-MI), Basslink conversion, ST-PASA Replacement, Inverter Dispatch, Shortening the Settlement Cycle (SSC), and Flexible Trading Arrangements (FTA).

This is not unique to IPRR and managing congestion has been an ongoing focus of the NEM Reform Program, including in collaboration with industry through the Reform Delivery Committee and Executive Forum.

AEMO’s view is that continuing with IPRR under the original approach would likely worsen resource contention and increase delivery risk for concurrent reforms.

Yes. AEMO recognises that some participants have already invested time and effort in preparing for IPRR. These impacts were considered as part of AEMO’s process to propose a pause and reset.

Pausing now, at the end of detailed planning, is intended to reduce the risk of greater disruption, rework or late change should issues emerge later in implementation.

Engagement and work undertaken by participants has informed AEMO’s understanding of implementation complexity, readiness and risk. This insight will be used to shape the revised and staged delivery path.

Before implementation milestones are reconfirmed, AEMO intends to establish clear safeguards, including:

• agreed scope and sequencing for staged delivery
• defined readiness criteria and approach
• confirmation that delivery capacity and IT environments are available
• governance checkpoints to test feasibility before timelines are reconfirmed.

Participants will not be expected to recommence material implementation activities until there is improved certainty on scope and timing.

Collaboration with industry through a consultative process will be important to inform the approach. AEMO is holding a second dedicated IPRR industry briefing session Friday 3 July 2026 from 1pm – 3pm (AEDT), focusing on sharing the outcomes from the consultation period conducted over May and June. AEMO is also offering one-to-one sessions for interested participants. Feedback from this consultation process informs the proposed staged delivery path.

Participants may wish to:

• Reflect on which IPRR capabilities deliver the most value earliest
• Register for and attend the 3 July IPRR briefing session
• Provide a written response to the Consultation Paper published 29 May 2026.

Contact [email protected] for more information.