Victoria at risk of power shortfalls in peak demand periods, report finds

VICTORIA will remain at risk of power supply shortfalls during periods of peak demand for the next two years, a report has found.

AEMO chief executive Audrey Zibelman.

VICTORIA will remain at risk of power supply shortfalls during periods of peak demand for the next two years, a report has found.

The Australian Energy Market Operator predicts an average summer in 2017-18 will present a “low risk” of problems for the power network.

But it has warned that the supply remains “susceptible” to extreme conditions, especially if there are generation or transmission issues or low wind and solar conditions during periods of peak demand.

The body, responsible for operating Australia’s largest gas and electricity markets, has already moved to ban summer maintenance of generators. And any “mothballed” plants will be forced into ­operation from October.

In its Energy Supply Outlook report, the operator said Victoria and South Australia were most at risk of power cuts.

AEMO chief executive Audrey Zibelman said the analysis showed “the power system is changing”.

“There will be challenges that will need to be managed proactively on days of extreme conditions,” she said.

Ms Zibelman said AEMO was working closely with governments and market participants to improve capacity in the system, so it could better cope with extreme situations.

Her remarks come as ­another report says that building a new low-emissions brown coal power station in the Latrobe Valley would ­deliver lower power prices and ensure reliable electricity supplies while helping the nation cut greenhouse gas emissions.

The report, by former Loy Yang CEO Ian Nethercote, said there was a pressing need for a new baseload power ­station in the Latrobe Valley.

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