CLP government to overhaul energy markets as Territory risks widespread blackouts
The Northern Territory is on the brink of frequent, life-threatening blackouts without widespread – and costly – investment in the power grid, the Energy Minister has warned.
The Northern Territory is on the brink of frequent, life-threatening blackouts without widespread – and costly – investment in the power grid, the Energy Minister has warned.
On Thursday Minister Gerard Maley will introduce the CLP government’s plan to tackle the brewing energy crisis.
“We inherited a system that simply wasn’t up to scratch and inaction is a cost we simply cannot afford,” Mr Maley told the NT News.
“It literally could become deadly … vulnerable people rely on airconditioning, rely on medical equipment – we need to make sure the energy system is going to be reliable.”
Reforms will include establishing a new market governance arrangement for the procurement of electricity assets, centralising batteries and generators instead of non-government organisations charging duplicate assets to the taxpayer.
The government will also separate the Electricity System Market Operator (NTESMO) from PowerWater to act as an independent system controller, which Mr Maley said would also help keep prices down.
He gave the example of both Territory Generation and PowerWater each planning to buy a $20m condenser.
“We’ve worked out that the system only needs one, and we’re only going to buy one – so we’re just really making sure we don’t waste taxpayers’ money,” Mr Maley said.
It comes as PowerWater issued a “non-reliable risk notice” from Monday to Friday this week, due to the current heatwave making it impossible to guarantee power supply.
Such notices are increasing in occurrence due to the age of current generator units that are more prone to failure.
In a 2024 report the NT Utilities Commission warned of forecast shortfalls in supply causing widespread blackouts by 2028, with generators due to be decommissioned accounting for more than a third of the capacity in the Darwin-Katherine grid.
The NT energy market has also been hit by the diminished supply of gas from ENI’s Blacktip field, which was meant to run to 2034.
Instead the government has been forced to purchase fuel on the costly spot market, and hope that gas soon starts flowing from the Beetaloo.
The CLP scrapped its renewables target in March, but Mr Maley said they remained committed to net-zero by 2050.
While renewables would “certainly be part of the mix” he said they would not be pursued at any extra cost.
“We’re focusing right now on reliable energy at the cheapest cost to Territorians,” he said.
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Originally published as CLP government to overhaul energy markets as Territory risks widespread blackouts
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