Queensland residents are asked to turn down their heating while electricity generators refuse to provide enough power for the next two nights.
Households and businesses in the southeast and coastal areas will be warned of possible power outages until Thursday morning.
The Australian Energy Market Operator (AEMO) has asked generators to cut electricity supplies, warning them to do so if necessary.
Discussions with planned generators indicate that an estimate of approximately 2000 megawatts (MW) of generation in each of Queensland and NSW, which has not been bid on the market, could be led by AEMO to be available to help meet the forecast electricity shortages,” the spokesperson said. The operator said in a statement.
Tuesday would be the second night that AEMO sent generators to turn on idle power plants to maintain supplies.
The CEO of transmission company Powerlink, Paul Simshauser, said people need to be “a little bit attentive” to their energy consumption.
“If you have your air conditioner on… make sure it’s not on blast furnace mode,” he told ABC Radio.
Queensland electricity producers stopped supplying power to the market after AEMO capped skyrocketing wholesale prices on the spot market on Sunday.
AEMO had to order generators to ramp up delivery on Monday night, despite the state having “sufficient physical generating capacity”.
About 2,000 MW of generation in both QLD and NSW, which has not been bidding on the market, could be driven by AEMO to help meet forecasted electricity shortages tonight. Our latest statement is available here: https://t.co/Pm2HpBNISh pic.twitter.com/br5qQTA15e
In Victoria, households and businesses will not be without power after a power outage warning due to power shortages was lifted.
The Australian Energy Market Operator issued a “lack of reserve” warning on Tuesday evening for Wednesday evening, meaning forecast demand will likely exceed supply in Victoria.
Initially, it stated that ‘blackouts’ could be expected between 6:00 p.m. and 7:30 p.m.
After asking for a response from the market, the regulator canceled the warning at 4 p.m. on Tuesday.
Companies that ‘possibly’ gamble the system
Energy Minister Lily D’Ambrosio blames fears on the “strange behavior” of energy companies sitting on their reserves and not bidding on the market.
She said the generators “may” be abusing the system, a topic federal, state, and territory energy ministers asked AEMO to investigate after their meeting last week.
“Nobody likes the situation we see now,” Ms. D’Ambrosio told ABC Radio Melbourne.
Queensland Energy Secretary Mick de Brenni insists he doesn’t need to step in as the market takes care of itself.
“So the system is working, and for the foreseeable future, we will continue to manage it accordingly,” he told reporters.
The minister blames the crisis on increased demand amid cold weather, rising coal and gas prices, and maintenance outages at public generators.
With fossil fuel prices still rising, electricity prices will remain high in Queensland, where 83 percent of energy is generated from coal and gas plants.
Government offers discounts on electricity bills.
The state-owned Stanwell Corporation and CS Energy supply more than half of the state’s electricity and have the greatest influence on spot price movements in the wholesale market.
The two generators also have coal mines, so fuel prices are much lower than private ones.
The minister can instruct Stanwell and CS to sell cheaper electricity on the market, but Mr. De Brenni has refused.
CS Energy told AAP that its prices were “commercially sensitive and therefore cannot be shared” but insisted that it met its commitments.
Mr. De Brenni denies that state-owned generators have manipulated prices, saying their prices only “cover the costs”.
Rather than intervene, the government will cut $43 from monthly household electricity bills until mid-2023.
Monthly bills will rise by at least $43 from July, but analysts predict they will rise again before mid-2023 if wholesale prices remain high.
The Queensland government has not yet provided support to companies.
