Breakdowns at coal and gas plants increase chance of NSW summer energy crisis

SYDNEY could be hit with an energy crisis this summer as regular breakdowns at the state’s coal and gas plants push up prices.

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SYDNEY could be hit with an energy crisis this summer as regular breakdowns at the state’s coal and gas plants push up prices.

There have been 19 power plant breakdowns this year alone, with warnings that hot temperatures will put even more pressure on the system.

Even in winter, between June 5 and 8, five coal power plant units were simultaneously­ offline. Three of those outages were sudden breakdowns, the Australian­ Institute has revealed.

Power lines which bear energy to the grid from Vales Point power station, near Port Macquarie.

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This triggered a “series of wholesale electricity price spikes” with prices exceeding $2400 per megawatt hour on five occasions over four days.

Normally prices range from $60/MWh to $300/MWh.

“The primary cause was multiple unplanned outages (breakdowns) at Liddell and Vales Point coal power stations combined with planned out­ages at a number of other coal plants,” the institute’s ­report states.

“This series of failures of the NSW gas and coal fleet compromised­ the ability of the system to meet electricity demand over this period.

Delta Electricity announced in 2017 that once Vales Point power station closes, the land will be used for a $30m solar farm. Picture: Peter Lorimer

“Summer is fast approaching and NSW can expect an increasing­ number of peak energy­ demands during extreme heat days.

“The question should be asked, how will the NSW electricity­ system cope if it suffers­ major energy crises during relatively mild winter?”

The report also warns that wholesale price surges­ due to plant shutdowns are ultimately passed on to consumers.

Workers inside the turbine hall at Liddell Power Station in the Hunter Valley. Picture: Jane Dempster/The Australian

The Australia Institute climate­ and energy division ­director Richie Merzian said the state should be bracing for more power out­ages which could result in blackouts.

“We know that NSW is highly dependent on old coal power stations.

“We know that these become more unreliable every year as they get older and are very prone to breakdowns in the heat,” Mr Merzian said.

“Our reliance on these old coal power stations is increasing the risk of blackouts.”

Late yesterday Energy Minister Don Harwin assured The Saturday Telegraph the energy market operator had forecast that NSW would have sufficient electricity supply to meet demand this summer.

“However this government will never be complacent with energy security,” he said.