Big energy users act to save the grid from blackouts over summer
As temperatures soar this weekend, more than a dozen large-scale energy users may be told to power down or off to avoid blackouts.
More than a dozen big energy users across NSW, Victoria and South Australia could be told to power down or power off this weekend as searing heat across the southeast puts energy supplies under pressure.
Temperatures are predicted to soar above 40C in Victoria and parts of South Australia tomorrow in a hot spell spreading to NSW on Sunday.
The Victorian Country Fire Authority has issued a total fire ban for the state and is operating more patrols, while other services including the Australian Energy Market Operator are taking precautions to avoid blackouts as the temperature soars and airconditioners are turned on.
Large-scale energy users including BlueScope Steel, Australian Paper and Anthony Pratt’s Visy are among 14 companies that could be asked to power down over the weekend, as part of an Australian Energy Market Operator program shoring up reserves during summer peaks.
Under the program, big energy users are paid incentives to power off or cut back energy use during summer heatwaves and large power producers are given incentives to “power up” extra generators to meet surging demand.
Combined, the agreements have added 1150 megawatts to emergency energy reserves across Victoria and South Australia — just under the capacity of the Hazelwood power station that was shut down last March.
AEMO said it was enough to ensure power stayed on across the southeast even when South Australia and Victoria were hit by heatwaves for days at the same time.
“AEMO has entered into agreements with some providers and continues to have discussion with others to secure a total of 1150MW of strategic reserves across Victoria and South Australia that we can call on in emergencies (such as) multi-day heatwave events,” a statement said.
“These reserves have been procured for all or part of summer 2017-18 and the actual amount of reserve available on any particular day depends on a number of factors including the characteristics of the reserve, which differs for each reserve.”
Companies that have agreed to power down include BlueScope Steel, OneSteel Manufacturing’s Whyalla steelworks, Visy, the Australian Steel Company’s steel mill in Laverton, Norske Skog timber mills and Australian Paper in Victoria.
Companies that will “power up” include energy producer AGL Energy and other network providers such as Flow Power, EnerNoc and SA Power Networks that have internal levers to lower demand across the network.
The agreement also includes more than 100 diesel generators midway through installation in Morwell in the Latrobe Valley, which AEMO contracted as an emergency stopgap. Terms of the agreements and how much each company is paid are confidential.
More companies are likely to join this year. Talks are continuing with groups including Alcoa at Victoria’s Portland aluminium smelter, which could free up another 440MW of supply during emergencies. The market operator has extended the program around the country, inviting applications from Tasmania, Queensland, NSW and the ACT, with a closing date of March.
Victoria’s Energy, Environment and Climate Change Minister, Lily D’Ambrosio, was confident the state’s energy supply would hold up with the help of AEMO’s contingency plans “to ensure that remains the case over summer”.
AEMO called for big businesses that could power down at short notice to take part in the program last May.
Victoria
A total fire ban has been issued across the whole of Victoria for Saturday, with Melbourne tipped to experience its hottest day in almost two years. There’s an all-day ban on lighting open airfires and the CFA is advising residents living in fire-prone areas to activate their bushfire plans. Melbourne is expected to swelter through 41C in the city on Saturday, with northerly winds reaching up to 40km/h.
It makes it the hottest day the city has experienced since January 13, 2016, when temperatures soared to 42.2C.
Temperatures are also expected to soar elsewhere in the state on Saturday - with Geelong and Bendigo expecting a high of 42C and Avalon, Echuca and Warracknabeal expecting 43C.
Life Saving Victoria has warned beachgoers of potential dangers after four drownings along the state’s coastline since Christmas Day.
Forest Fire Management Victoria chief fire officer Stephanie Rotarangi urged people to check conditions before entering parks and forests, to stop and rest in the shade, drink water and head back immediately if someone becomes unwell.
NSW
The mercury is excpected to reach 45C in several areas of Sydney’s west on Sunday, while the CBD and eastern suburbs may also top 40C.
Elsewhere in nsw temperatures will reach the high 30s.