SMA backs AEMO plan, touts grid-forming inverters

SMA Australia has backed the Australian Energy Market Operator's 2025 Transition Plan for System Security and said grid-forming inverter technology will play a central role in maintaining stability as coal-fired power stations retire.

The company, which supplies power conversion systems for solar and battery energy storage, said the shift to inverter-based resources was creating new technical demands on the electricity system. It argued that grid-forming solutions that can provide services such as synthetic inertia and fast frequency response would become increasingly important as the share of renewable generation grows.

AEMO's plan sets out short, medium and long-term priorities under its Horizon framework. It addresses the move to fewer synchronous generators, the introduction of new system strength services under transitional contracts, and the progressive replacement of ageing assets with newer technologies.

John Alexander, Managing Director of Large Scale Solutions at SMA Australia, said grid security would depend on the performance of these new technologies. "As Australia navigates a once-in-a-generation energy transition, the role of proven, intelligent power conversion technology will be critical to maintaining grid stability and public confidence. We support AEMO's phased and collaborative approach and stand ready to help deliver the system strength, inertia and flexibility our grid needs - now and into the future," said Alexander.

Grid-forming focus

SMA said its grid-forming inverter and control systems already operate in several overseas markets. The company said those projects show that inverter-based equipment can operate in both low-synchronous and high-renewables conditions and can deliver a range of system security services.

It said, however, that further technical validation under Australian network conditions was still required. Different grid characteristics and regulatory standards mean that international operating experience does not automatically translate into local acceptance.

AEMO is running trials and plans an Access Standards Review that will examine the performance requirements for new generation and storage connections. SMA said these processes would influence how quickly grid-forming inverters can assume roles currently handled by synchronous machines.

"We welcome AEMO's ongoing trials and the upcoming Access Standards Review," said Alexander. "These processes are essential to ensuring that system security services from inverter-based resources can be safely and confidently scaled, and we're committed to contributing."

System services

SMA said its current power conversion products already provide fast frequency response and synthetic inertia from battery energy storage systems. It said they can operate in grid-forming mode for frequency and voltage control. The company also said a single installation can deliver multiple services.

The firm pointed to a track record in markets with already high levels of inverter-based generation and that are managing the decline of synchronous units. It did not name specific projects in its comments on the Australian plan.

Industry engineers view grid-forming inverters as increasingly capable of providing inertia-like services. SMA said these functions are now relatively well understood. The company added that there is less certainty about how far such equipment can replace traditional sources of system strength that stabilise voltage and support fault performance.

AEMO has scheduled further work on system strength from inverter-based resources for 2026. SMA described that work as a critical milestone for the technology. It said complete reliance on grid-forming inverters for system strength will require more testing and evidence.

Until then, the company expects synchronous condensers to remain in service as an essential part of the grid architecture. It said it supports a measured and evidence-based transition as the balance between synchronous and inverter-based equipment shifts.

Investment and planning

SMA said that future renewable and storage projects will require closer coordination among developers, transmission network service providers, and technology suppliers. It said this coordination will influence whether projects maximise both energy output and contributions to grid security and resilience.

The company argued that decisions on plant design, connection standards and service contracts will shape the extent to which renewable projects can support frequency, voltage and fault performance. It said early engagement on these elements can reduce delays and technical disputes later in the project cycle.

Australia is in the midst of a programme to replace coal-fired generation with a mix of renewables and storage. The transition has raised concerns about maintaining reliability and stability, particularly as older thermal units retire ahead of schedule.

"This is a technically complex transition, but also a solvable one," John added. "Australia's success will depend on forward planning, proven technology and close industry collaboration, and we're here to play our part."