We are updating communication and control requirements for embedded generators connecting to the High Voltage (HV) network to support the NSW Government’s Emergency Backstop Mechanism and prepare for updated licence requirements. These changes will help maintain a safe, reliable and stable electricity network.
Who this applies to
The updated requirements apply to HV embedded generation projects signing a Connection Agreement on or after 1 January 2027.
Projects with a signed Connection Agreement before 1 January 2027 are not affected by these updated requirements.
Upgraded licence conditions
The NSW Government is amending electricity distribution licence conditions for NSW distribution network service providers, including Essential Energy, to introduce the Emergency Backstop Mechanism. These conditions require networks to be able to temporarily reduce solar exports or pause generation during rare emergency conditions, and only when directed by the Australian Energy Market Operator.
Affected systems must be able to receive and respond to operational limits during Minimum System Load events to help protect power system security.
For HV embedded generation, Essential Energy is applying these obligations through SCADA communication and control requirements.
What is changing?
HV embedded generation systems will need to include a SCADA solution using an Essential Energy-owned remote terminal unit installed at the customer’s premises.
The customer’s generator controller must be able to receive limits from the SCADA remote terminal unit and respond within the required timeframe. Alternative communications such as CSIP-AUS may be considered for smaller systems, subject to Essential Energy approval.
How to prepare for the change
If your application is already in progress: contact the Connections Co-ordinator assigned to your project to discuss timing and whether any design changes may be required.
For future applications: consider these requirements during design development and include SCADA remote terminal unit communications where applicable. For detailed technical requirements, refer to Technical Standard CEOS7903, Embedded Generation - SCADA Connection and Emergency Backstop Requirements.
Frequently Asked Questions
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What are the communication and control requirements for embedded generators?
Embedded Generation Scope Size NetworkLevel Requirement Solar PV / DC batteries Up to 200kW LV CSIP-AUS Solar PV / DC batteries 200kW to 1.5MW LV CSIP-AUS or SCADA All other embedded generation
Up to 1.5MW
LV No requirement All embedded generation Up to 1.5MW HV CSIP-AUS or SCADA All embedded generation 1.5MW to 5MW HV SCADA All Chapter 5 generation (Non-scheduled) 5MW to 30MW HV SCADA Remedial Action Scheme (RAS) / other arrangements including curtailment (subject to individual design) All Chapter 5 generation (Scheduled and Semi-scheduled) ≥30MW HV Registered facility managed directly by AEMO using National Electricity Market Dispatch Engine-NEMDE (subject to individual design) -
Will emergency backstop requirements apply if I add a BESS to an existing HV generator?Yes, if the change requires a new or updated connection assessment, communication and control requirements apply.
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Can I still import electricity from the grid during an MSL event?Yes. Electricity can still be imported from the grid within agreed limits during an event.
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How do SCADA operating limits work?
Projects using SCADA operate with a static operating envelope (SOE). This sets the site’s fixed import and export limit profiles based on the connection assessment.
During a Minimum System Load event, the SCADA remote terminal unit sends limits to the customer’s generator controller. The generator controller must respond within 10 minutes. Customers can continue importing electricity from the grid during an event, within agreed limits.
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What is the estimated cost of SCADA RTU communications and maintenance?
SCADA remote terminal unit communications are expected to cost approximately $30,000 to $60,000 per site, depending on the size and design of the system. This generally includes design, hardware, installation and testing.
Essential Energy will carry out regular SCADA remote terminal unit inspections and maintenance. Customers are responsible for maintaining the connection between their generator controller and the SCADA remote terminal unit, and for paying inspection and maintenance costs.
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What does a typical SCADA architecture diagram look like?
The diagram below provides a high-level overview of a typical SCADA communication and control arrangement for an HV embedded generation connection.
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Our project is a 2MW BESS with a zero export limit. Do we still need an Essential Energy RTU for SCADA backstop?Yes. BESS projects are treated as generators for SCADA and backstop requirements, even where a zero export limit applies. An Essential Energy-owned RTU is required where the project falls within the applicable SCADA requirement threshold.
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What communications service is required for SCADA?Essential Energy will confirm the communication method during the connection process. Proponents should allow for reliable site-to-SCADA connectivity early in project design.
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Who pays for the SCADA RTU, communications, inspections and ongoing maintenance?Customers are responsible for the cost of the Essential Energy-owned SCADA RTU, including associated communications, installation, inspection and maintenance costs. The estimated cost is approximately $30,000 to $60,000 per site, depending on the size and design of the system. Customers must also maintain the connection between their generator controller and the SCADA RTU.
