Price hikes and widespread blackouts are predicted this summer unless urgent action is taken to fix the national electricity grid.
Australia’s energy regulator has urged the federal government to set up a power reserve to prevent a ‘heightened risk’ of supply shortages in the coming months.
Australian Energy Market Operator CEO Audrey Zibelman warned the nation’s power system no longer has the reserves it once did and said new generators must be built to avoid a crisis.
‘To balance peak summer demand in real time, targeted actions to provide additional firming capability are necessary to reduce heightened risks to supply,’ she said.
Price hikes and widespread blackouts are predicted this summer unless urgent action is taken to fix the national electricity grid (stock image)
The AEMO also warned of a longer-term threat in New South Wales, which faces a 46 per cent likelihood of ‘significant’ unmet demand if the Liddell generator (pictured) closes in 2022 as planned.
Victoria has up to a 43 per cent chance of significant power failures this summer while South Australia has a risk of up to 33 per cent, according to figures set to be released on Wednesday, The Australian reported.
The AEMO also warned of a longer-term threat in New South Wales, which faces a 46 per cent likelihood of unmet demand if the Liddell power station closes in 2022 as planned.
Malcolm Turnbull on Tuesday spoke with owners AGL about ways the Liddell generator could continue operating for at least five years after 2022.
The prime minister conceded the company wants to get out of coal but revealed AGL chief Andy Vesey was ‘prepared to sell to a reasonable party’ to keep it going.
Malcolm Turnbull on Tuesday spoke with owners AGL about ways the Liddell generator in New South Wales could continue operating for at least five years after 2022
The prime minister conceded the company wants to get out of coal but revealed AGL chief Andy Vesey (pictured) was ‘prepared to sell to a reasonable party’ to keep it going
‘I’m not interested particularly in who owns Liddell and it is only an option,’ he said on Tuesday night.
Asked whether the government would buy it, Mr Turnbull said: ‘I think it’s better that the private sector owns generators like that.’
He said he owed it to all Australians to maintain affordable and reliable electricity, and keeping the Liddell station was one way of doing that.
‘There are obviously other options, but one option clearly that I as prime minister have to explore is keeping Liddell going,’ he said.
But Mr Vesey posted on Twitter that ‘keeping old coal plants open won’t deliver the reliable, affordable energy our customers need’.
AGL wants to close all its coal-fired power station by 2050, starting with Liddell in the NSW Hunter Valley.
Energy Minister Josh Frydenberg (left) said Mr Turnbull’s (right) involvement was significant
Minister for the Environment and Energy Josh Frydenberg, Deputy Prime Minister Barnaby Joyce, Prime Minister Malcolm Turnbull and Treasurer Scott Morrison during a meeting with Energy company heads at the Commonwealth Parliamentary Offices last week
It has committed to shutting down the station in 2022 when it reaches the end of its 50-year operating life.
‘AGL has provided this advance notice to avoid the volatility created by the sudden exit of other coal-fired power stations,’ an AGL spokeswoman said.
‘AGL is actively assessing what capacity will be needed post-2022.’
Energy Minister Josh Frydenberg said Mr Turnbull’s involvement was significant.
‘(It’s) a serious signalling of our intent that we will do everything we can to keep sufficient baseload power in the system,’ Mr Frydenberg said.