New South Wales is bracing for electricity supply challenges as a heatwave drives demand for energy, combined with coal generation and transmission infrastructure outages.
An anticipated NSW heat spike tomorrow had the Australian Energy Market Operator (AEMO) flag the risk of disruption to more than 1,700 megawatts of supply, though this was downgraded to a less critical level after the cancellation of certain transmission outages.
AEMO noted that while "forecast electricity reserves have improved in NSW this Wednesday," the organisation remains vigilant about maintaining grid reliability in NSW and Queensland.
Persistent high temperatures are expected to keep demand elevated against the backdrop of "significant generation unavailability", prompting AEMO to consider tapping emergency reserves if necessary.
Solutions needed
Rob Wheals, chief executive of Andrew Forrest's Squadron Energy, highlighted the challenges of an energy system heavily reliant on ageing coal infrastructure.
"We know that Australia’s coal fleet is nearing the end of its economic and technical lifespan, with coal plant outages driving high price periods," Wheals said.
He also promoted Squadron's Port Kembla gas import terminal as a solution to address domestic gas shortages and secure supply.
AEMO’s transition road map, endorsed by the Albanese Government, points to renewable energy, supported by large-scale batteries and gas, as the most cost-effective solution to replace coal.
However, AEMO chief executive Daniel Westerman said there were no guarantees that the energy transition would result in lower power bills.
The outlook underscores the urgency of modernising Australia's energy infrastructure to withstand increasing demand and climate variability, as the nation navigates its path toward renewable energy dominance.