Network operators seek longer notice of power plant closures
Electricity network operators want the notice period for plant closures extended to five years.
Electricity network operators want the notice period for plant closures extended to five years because of fears they will not be able to keep up with the changing location and mix of generators in the national grid.
Energy Networks Australia said a proposed three-year notice period was a “tight squeeze” when plant closures trigger major new investments such as interconnectors that link the state grids in the National Electricity Market.
Generators have no minimum notice period under existing rules and the closure at short notice of the Northern and Playford plants in South Australia and the Hazelwood plant in Victoria plunged the country into crisis in 2016 and again last year.
Alinta gave 11 months’ notice of the South Australian coal plants’ closure and Engie just five months for the closure of its Latrobe Valley brown coal plant.
Chief Scientist Alan Finkel recommended the notice period among 50 changes to the market sparked by the SA blackouts and the rapid transition of the market to renewable energy sources.
But a submission by ENA to the peak rule-making body for the NEM, the Australian Energy Markets Commission, states that three years may not be enough.
ENA chief executive Andrew Dillon said giving the market more time would help the whole system cope when generation was retired. “Three years may be enough notice when the replacement generation is easily incorporated into the existing grid, but it’s a tight squeeze if the retirement triggers a need for new infrastructure such as interconnectors,” he said.
An integrated system plan developed by the AEMO calls for the priority development of new interconnectors from South Australia and Queensland into NSW to strengthen the national grid. The interconnectors would allow a better of flow of SA’s renewables-heavy power system with the coal-fired systems in NSW and Queensland.
Both South Australia, which links into the NEM through Victoria, and Queensland were cut off from the national grid when lighting struck transmission infrastructure in Queensland last month. The incident forced power cuts to the Tomago and Portland aluminium smelters and tens of thousands of homes.
“We don’t want to build new network infrastructure that may not be needed, but we’ll all be in trouble if major generation closures lead to major system risks,” Mr Dillon said.
“Pushing out the notice period to five years will provide more certainty and help increase the delivery of required transmission assets within the five-year window — factoring in approvals, environmental assessments, project plans and build time.”