Implications of extreme weather for the NEM

Historical analysis and 2019 extreme heatwave scenario


Department of the Environment and Energy



Simon Orme and Dr James Swansson


Sapere has been retained by the Australian Department of Industry to prepare a report on the impact of extreme weather events on the National Electricity Market (NEM), to inform the department’s preparation of a third National Energy Security Assessment (NESA). Part one of the report consists of an analysis of data and reports on extreme weather events. Part two develops a “stressor” scenario to assess the resilience of the NEM’s physical and market operations during prolonged, extreme heatwaves over the short- to medium-term (up to five years).