South Australia to use mothballed power plants over summer

Transmission towers against striking red evening sky (far north queensland)
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The Australian Energy Market Commission (AEMC) has made a final rule to help secure South Australia’s electricity supply, allowing two additional power stations to be considered as emergency backup power sources during summer.

ENGIE last year mothballed the 63MW Snuggery and 75MW Port Lincoln peaking generators ahead of their permanent closure in 2028.

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The temporary rule change enables the Australian Energy Market Operator (AEMO) to consider contracting Snuggery and Port Lincoln power stations as emergency out-of-market reserves. This exemption from usual market restrictions will end on March 31, 2025.

The South Australian Government has welcomed the determination.

SA Energy Minister Tom Koutsantonis said, “The state government makes absolutely no apology whatsoever for moving forthrightly to secure appropriate backup generation that ensures there is consistency of supply in the event of a gas shortage.

“I am glad the AEMC has agreed to our request to grant the South Australian Government authority to direct ENGIE to utilise two currently mothballed power stations at Snuggery and Port Lincoln if required between now and when the long-delayed interconnector to New South Wales comes online,” he said.

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“I am not and have never been ideological when it comes to safeguarding energy supply.
The last thing we want is a future scenario where the market operator institutes load shedding and we have additional capacity sitting idle, unable to be switched on.

“It is incumbent on a responsible government to plan for the worst whilst demanding reliability. As far as I’m concerned, every state should have sufficient capacity to look after itself first and not rely on other jurisdictions. While it’s unlikely to be used, that’s why we sought the ability to bring in this additional generation if it is ever necessary.”

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