Blackout Summer: Fears we’re headed for ‘third world’ energy market

NSW faces a summer of blackout warnings amid fears that our fragile energy grid will fall over as the temperature soars, until gas comes to the rescue to deliver more power on demand.

NSW faces a summer of blackout warnings amid fears that our fragile energy grid will fall over as the temperature soars, until gas comes to the rescue to deliver more power on-demand.

There were warnings Australia was in danger of becoming a “third world country” as Premier Chris Minns yesterday asked families to avoid washing their clothes or their dishes last night to help keep the lights on, after the Australian Energy Market Operator (AEMO) warned there might not be enough power in the system to meet demand.

Government departments were told to turn off the lights, close the blinds and run airconditioning units at up to 26 degrees to save electricity, while staff at the Sydney Children’s Hospitals Network were asked to switch off unused computers, electrical equipment and power points.

With four coal-fired power generators offline for maintenance or repairs, authorities were warning that renewable energy was not enough to make up the gap.

People watch as the sun rises over Ben Buckler Point in Bondi yesterday as Sydney sweltered in boiling hot weather. Picture: Brook Mitchell/Getty Images

“Solar production in the energy market starts to come off from 3pm at exactly the same time as people return home from work,” Mr Minns said.

Asked whether the warning is an acknowledgment that the grid would fail without coal-fired power, Mr Minns said it will take time for the transition to improve reliability.

“Everybody knows that coal has generated most of NSW’s electricity for decades in the state, but we are in a transition period,” he said.

The state’s coal plants are rapidly coming off line, but there is not yet enough renewable generation to fill the gap.

Snowy Hydro’s gas-fuelled Hunter Power Project, will eventually supply 750 megawatts of power into the grid, is still months from powering up.

The generator is due to begin operations from December for testing and commissioning.

There are now warnings that yesterday’s blackout risks would continue over summer, as the energy grid was put under more strain.

But following Wednesday’s scorching temperatures, Energy Minister Penny Sharpe said coal fired power stations will soon be back online, alleviating pressure on the energy grid.

Extreme heat heightened the risk of blackouts this week, with residents told to conserve power between 3-8pm on Wednesday.

The Energy minister thanked businesses and households for making an effort to keep the lights on.

“The big challenge yesterday was very hot weather over a number of days, and then it was the fact that we had four units out across three of the power stations,” she told 2GB’s Ben Fordham.

“We did avoid the blackout as a result of a big effort from industry, government and from household businesses and we’re grateful for that.”

Sydneysiders at Bondi Beach find relief from the heat as the state’s fragile energy grid was pushed to its limits. Picture: Sam Ruttyn

The Grattan Institute’s Energy Program Director Tony Wood said it was “more likely than not” that the NSW energy outlook would get worse over the hotter months.

“There’s certainly indications that we’re looking at a tough summer,” he said.

“The system’s stuffed, basically.”

Mr Wood said the transition away from coal-fired power has been mismanaged, leading to reliability risks.

“We haven’t done a great job of putting together the pieces of kit that are necessary to get to where we want to be,” he said.

Industry veteran Paul Broad yesterday slammed the transition away from coal as rushing Australia into being a “third world country”.

He said baseload power plants are not being maintained properly, and said the energy crisis has been hidden by a series of mild summers.

“It has hidden the precarious position that our energy sector has got itself into,” he said. Mr Broad accused governments of “rushing to close coal plants”.

The electricity grid at Liddell Power Station which was closed last year. Picture: Britta Campion / The Australian

Monash Energy Institute Director Roger Dargaville warned that hot weather over summer would put more strain on an already fragile system.

“Demand goes up when the weather’s hot, so there is great risk that you won’t have enough generation … hot weather also makes thermals plant such as coal-fired power stations less reliable,” he said.

Liddell Power Station was closed in April last year, while Vales Point is scheduled to shut in 2033, Bayswater between 2030 and 2033 and Mount Piper by 2040. Each of these coal plants is privately owned after being sold by the former Coalition government.

The Premier said ageing coal-fired powers stations had been taken offline for scheduled repairs in part to ensure they would be able to handle summer heat.

Vales Point Power Station at Lake Macquarie is set to shut down for good in 2033. Picture: Toby Zerna

Liberal Energy spokesman James Griffin said it was highly likely we could expect more blackout risks over summer, blaming the government for failing to deliver more solutions for baseload power.

“Why haven’t they looked at firming solutions and had discussions with generators to mitigate the summer that we’re about to go into?” he said. Mr Griffin acknowledged his predecessor Matt Kean could have done things differently after the former Energy Minister refused to extend the life of Eraring Power station.

However, he said the Minns government has now had two years to find solutions.

Energy Minister Penny Sharpe said coal is still “extremely” important in NSW, but said the generators are needing increased maintenance as they age.

Ms Sharpe thanked consumers for reducing their use to ease demand on the system last night. “The risk of power supply shortage in NSW has considerably reduced,” she said.

AEMO used its emergency powers to secure additional reserves yesterday as the grid held it together on a day temperatures reached 39C. It cancelled its blackout warning about 6pm, but warned of more problems next week.

Coalition federal energy spokesman Ted O’Brien blamed the government for the blackout warning, saying Labor was “consigning Australians to energy poverty.”

But Energy Minister Chris Bowen said it would be “disingenuous and dishonest to blame renewables,” as four coal generators were offline.

Do you have a story for The Daily Telegraph? Message 0481 056 618 or email [e-mail]

Originally published as Blackout Summer: Fears we’re headed for ‘third world’ energy market