The Australian Energy Market Operator (AEMO) this week issuing a warning that heatwave conditions combined with the unavailability of major coal-fired power stations could result in reduced electricity supply in New South Wales.
This has heightened concerns about blackouts and spiking prices across the NEM over what the Bureau of Meteorology predicts will be a very hot summer period.
Experts say the limits of our ageing coal-fired power stations will be put to the test.
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“The Bureau of Meteorology is predicting a very hot summer ahead, which will put enormous pressure on Australia’s ageing coal-fired power stations. You wouldn’t expect a 40-year-old car to keep running smoothly, and we can’t rely on these ageing stations to deliver during extreme heat. Coal outages this week forced our grid operator to take action to keep the lights on,” Climate Council CEO Amanda McKenzie says.
The Climate Change Authority’s (CCA) latest annual progress report confirms that progress is being made, but delivering existing policies is key to cutting climate pollution and ensuring a stable, clean energy supply.
McKenzie says, “The Authority’s Report highlights the significant progress on renewable projects and policies. But, Australia needs to double the pace of the renewable rollout to meet growing energy needs and prevent power blackouts as ageing and unreliable coal stations shut down. With climate impacts like harsher droughts to rising costs of living escalating, urgent action is needed to protect communities and limit damage.”
The annual progress report’s recommendations identify key opportunities to make further cuts to climate pollution this decade. The report recommends supporting more Australians to upgrade their home’s efficiency, speeding up the connection of essential renewables and storage to the grid, and ensuring that big polluters have a plan to cut their climate pollution.
But should the onus be on consumers to reduce grid demand—or on the industry to move beyond a ‘brace for impact response’ to mitigate the risk of extreme weather events?
Neara co-founder Jack Curtis argues it’s time for the industry to address critical constraints preventing renewable generation from entering the grid to stabilise supply so consumers don’t wear the brunt.
“The closure of Liddell coal station left a 6,000GWh energy gap—a gap not filled by renewables despite the rapid acceleration in clean energy generation over the past 12 months. It’s a clear warning sign for the summer ahead given how early in the season AEMO has stepped in to stabilise the energy supply. It also raises questions about the capabilities of our existing network to sustain consumer demand during extreme weather events.
“The industry as a collective must shift from a ‘brace for impact response’ and look for new solutions to significantly mitigate the risk of extreme weather events like extended heatwaves and floods. Network accessibility and availability are two critical yet unresolved challenges, preventing renewable generation from stabilising supply.
“It doesn’t matter how quickly we’re developing renewable projects if we fail to bring this energy online, a challenge we’re currently in the middle of. We either need to build new grid infrastructure, or we need to leverage the existing grid to its full potential. With transmission line projects facing ongoing delays, the answer should be clear,” he says.
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Curtis says public and private energy stakeholders must work together to mitigate damage, stress-test infrastructure, and leverage the existing grid to its full capacity.
“We have new solutions including AI-powered grid analysis which can reduce transmission line and coal plant reliance, but we need policy to shift gears. If we don’t focus on improving ageing energy infrastructure and modernising the risk mitigation approach of utilities with technology, Australian consumers will bear the brunt.”
