Australian operator warns of reduced power reserves
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Australia Electricity Supply Shortfall highlights AEMO's warning of reduced reserves as coal retirements outpace capacity, risking load shedding. Calls for 1GW strategic reserves and investment in renewables, storage, and dispatchable power in Victoria.
The Core Facts
It is AEMO's forecast of reduced reserves, higher outage risk, and a need for 1GW strategic backup capacity.
Coal exits outpace firm capacity, eroding reliability margins
AEMO urges 1GW strategic reserves in VIC and SA
Risk of supply interruption and load shedding increases
Invest in renewables, storage, and dispatchable generation
Policy certainty needed to drive private investment
Australia’s electricity operator has warned of threats to electricity supply including a shortfall in generation and reduced power reserves on the horizon.
The Australian Energy Market Operator (AEMO) has called for further investment in the country’s energy portfolio as retiring coal plants are replaced by intermittent renewables poised to eclipse coal, leaving the grid with less back-up capacity.
AEMO has said this increases the chances of supply interruption and load shedding.
It added the federal government should target 1GW of strategic reserves in the states most at risk – Victoria and South Australia, even as the Prime Minister has ruled out taxpayer-funded power plants in the current energy battle.
CEO of the Clean Energy Council, Kane Thornton, said the shortfall in generation, reflected in a short supply of electricity, was due a decade of indecisiveness and debate leading to a “policy vacuum”.
He added: “The AEMO report revealed that the new projects added to the system under the renewable energy target will help to improve reliability over the next few years.
“We need to accept that the energy system is in transition, with lessons from dispatchable power shortages in Europe, and long term policy is now essential to ensure private investment in the most efficient new energy technology and solutions.”
