Lights out: NT Utilities Commission report warns of risks to Territory power in government push for more renewable energy

The Territory government has received its strongest warnings yet that it needs to carefully manage the risks and costs of the transition to much more renewable electricity generation with the release of a new report from the NT Utilities Commission.

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THE Territory government has received its strongest warnings yet that it needs to carefully manage the risks and costs of the transition to much more renewable electricity generation.

The NT Utilities Commission’s 2020 Electricity Outlook Report, released this week, identifies three “big risks” the government needs to address to prevent the lights from going out and the transition costing consumers and taxpayers more than the lower costs promised by renewables. It warns that “time is running out to meet the emerging risks”.

The report urges the Gunner government to accelerate work on electricity market reforms and technical planning.

The Utilities Commission is forecasting 23 per cent renewables as a proportion of electricity consumption in the Darwin-Katherine system by 2029-30, which is less than half of the government’s 50 per cent target. Alice Springs is worse: just 14 per cent.

It also forecasts a generation capacity shortfall to meet system security needs in Darwin-Katherine and Alice Springs systems.

It warns that as a result “the overall power system operation may be less secure and at an increased risk of a major incident”.

Industry experts say consumers may be disconnected if supply is too tight and the Territory is going to need a lot more investment in renewables to reach the target.

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“But given the risks and costs of transition identified by Utilities Commission to get just halfway there, that could be expensive and this effort is to target just 13 per cent of the Territory’s total greenhouse gas emissions,” they said.

The rapid growth of rooftop solar and other “behind meter” solar generation is expected to threaten system security as uncontrolled supply and low dry season demand makes it difficult to keep control of the system using gas-fired generators.

New ways of controlling electricity systems to ensure the lights stay on are needed very soon.

Among the risks to power supply and the recommended actions is the need to replace the big generation capacity gap left by Territory Generation’s planned retirement of six large generators at the Channel Island power station and three generators at the Katherine power station (two of which are already unserviceable).

Consumers may be disconnected if supply is too tight.

Renewables and Energy Minister Eva Lawler said the Territory government’s draft policy position and consultation papers on priority electricity market reforms would address system security, reliability and efficiency.

She said it addressed private investment and maximising the amount of renewable power in the network.

“The Darwin-Katherine System Plan is well progressed, along with our Alice Springs Future Grid project,” Ms Lawler said.

“These will clearly set out government’s pathway to 50 per cent renewables by 2030.”

Ms Lawler said the government was well underway with the procurement for a $30m 35MW Battery Energy Storage System for the Darwin to Katherine power system.