Submission for Essential System Services contract procurement through Electricity Services Entry Mechanism

This paper proposes a new framework for procuring Essential System Services (ESS) through the Electricity Services Entry Mechanism (ESEM), aiming to address critical gaps and inefficiencies in the current National Electricity Market (NEM) approach. ESS—such as frequency control, voltage regulation, system strength, inertia, and restart capabilities—are vital for maintaining grid stability, especially as thermal generation retires and inverter-based resources increase. Power system security takes precedence over reliability as the electricity market cannot operate without a secure power system.