Australian Energy Regulator report reveals widespread failures at Victorian coal-fired power stations
Failures at Victoria’s coal-fired power stations have seen the generators deliver the least amount of energy in a quarter in two decades, sparking fears about the grid’s reliability for summer.
VIC News
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Widespread failures at Victoria’s ageing coal-fired power stations have seen the generators deliver the least amount of energy in a quarter in two decades.
Loy Yang A, Loy Yang B and Yallourn all suffered significant outages between July and September, leading to the worst three-month period since the national electricity market went live in 1998.
While the coal-fired stations are supposed to be operational by the peak of summer — along with the Mortlake gas station that broke down in July — the failures have heightened concerns about the reliability of Victoria’s power grid.
It comes as state and federal energy ministers will meet in Perth on Friday to debate changes to the electricity system.
A new report from the Australian Energy Regulator found increased gas generation covered the recent shortfall in Victoria caused by issues at coal-fired stations.
Coal delivered 3520 megawatts in the three-month period — about 600 megawatts below the same period last year.
A 552-megawatt unit at Loy Yang A was out for 92 days because of electrical issues, while three units at Yallourn were out for between 24 and 34 days because of tube leaks.
A 535-megawatt unit at Loy Yang B, owned by Alinta Energy, was also knocked out for two weeks by a tube leak. While it is supposed to remain open until 2048, Alinta boss Jeff Dimery this week flagged the low cost of renewables could force Loy Yang B to shut down early.
Victorian Energy Minister Lily D’Ambrosio will push for several key reforms at Friday’s meeting, including changes to the reliability standard which governs how much power is needed in the grid to keep the lights on during periods of peak demand.
In a letter to Federal Energy Minister Angus Taylor, she said the current standard failed to recognise “changes in climate, our energy network, the way Australians consume power and ageing and less reliable coal generators”.
But community and business groups warned Victoria’s proposal would force up power prices while striving “for an unobtainable goal of 100 per cent reliability”.
The Brotherhood of St Laurence and the St Vincent de Paul Society were among the groups which said: “We are in grave danger of overreacting to short term reliability concerns, rather than making more considered reforms and ensuring investments are in the long-term interests of consumers.”
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Summer readiness, reliability and affordability will be top of mind for Mr Taylor at Friday’s meeting.
“We are seeking agreement to bring forward a review of the reliability standard,” Mr Taylor said.
“As energy ministers we have an important job to do ... Our focus should always be on increasing reliability and lowering prices.”
Power was cut to 200,000 Victorian households last summer when coal failures during a heatwave forced the energy market operator to institute rolling outages.