Tom Koutsantonis orders owners of electricity interconnector to Victoria to provide more information to regulators in bid to stop controlled blackouts, price spikes

TREASURER Tom Koutsantonis has ordered owners of the electricity interconnector to Victoria to provide more information to regulators in a bid to stop controlled blackouts and price spikes.

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TREASURER Tom Koutsantonis has ordered owners of the electricity interconnector to Victoria to provide more information to regulators in a bid to stop controlled blackouts and price spikes.

Mr Koutsantonis has issued new regulations which require ElectraNet to alert the Australian Energy Market Operator of limitations in the Heywood interconnector to Victoria so action can be taken to stabilise grid frequency.

A series of recent reports have raised concerns that the state’s 40 per cent supply of wind energy poses risks for managing frequency, which must be balanced out with fossil fuel generation.

When frequency is not managed, load shedding or controlled blackouts can occur.

Mr Koutsantonis said the new regulation ensured the market had more information about how the interconnection was functioning, and could respond by raising or dropping their generation.

“(It’s) to manage the system and frequency control, as to make sure that you can integrate renewables,” he said.

“What I’m doing is giving them (AEMO), through a Government direction and regulation, power to enter the market and augment the market for system security.

“The market currently acts as if there is thermal generation everywhere, and just takes the lowest bid.

“That means wind wins every time.

“To stop us having a frequency event, which can see load shedding or other things, you manage it.”

Mr Koutsantonis said he expected it would encourage local energy generators to increase their supply under certain conditions, leading to lower prices.

Meanwhile, more than 4300 Victorian homes were still without power yesterday, four days after wild weather caused major outages across the state.