Why millions of Australians could face power blackouts this summer as coal power plants are taken off the grid

The lights may go out for millions of Australians this summer following a dire warning from energy chiefs about the reliability of the country’s electricity supply.

Victoria and South Australia could face blackouts this year as power goes out due to a lack of renewable energy and derelict coal-fired power plants.

Continued blackouts could then hit New South Wales by 2025 and Queensland by 2029, according to a new report from the Australian Energy Market Operator.

The energy regulator published its 10-year reliability report to the National Electricity Market on Thursday, with a chilling warning about the country’s conversion to coal.

There is an urgent need for new investments in renewable energy sources to fill the gap created by the planned closure of coal-fired power plants, to avoid the risk of outages.

It is concerned that current renewable projects under construction have stalled or been delayed, which could lead to energy shortages during peak demand when air conditioners run overtime to cope with the predicted summer heat.

The AEMO has now called for increased spending on renewables, storage, generation and transmission to meet the country’s needs before the power grid enters a crisis.

Victoria and South Australia could face blackouts this year as power cuts due to lack of renewables and derelict coal plants

“There will be an increased level of risk this coming summer, especially in Victoria and South Australia,” revealed Daniel Westerman, CEO of AEMO.

“That’s because of the predicted hot and dry summer, as opposed to the relatively cool and wet summers we’ve seen in recent years.”

He said the government and the energy sector are working together to mitigate the risks and are preparing plans to mitigate the impact.

But he admitted, “There is still a level of risk.

“This year’s report highlights the pace of Australia’s energy transition and the urgency needed to make new investments to ensure reliable, affordable and cleaner energy for consumers.

Over the next decade, we continue to forecast reliability gaps, mainly due to the expectation that 62 percent of the current coal fleet will retire by 2033.

“To ensure that Australian consumers continue to have access to reliable electricity supplies, it is critical that planned investments in transmission, generation and storage projects are implemented urgently.”

The problem has been exacerbated by a number of end-of-life coal plants being shut down due to breakdowns amid weathermen’s warnings of a sweltering summer with little wind ahead.

“We expect a higher level of risk compared to recent years, mainly due to warmer and drier conditions, and the reliability of coal-fired power stations is at an all-time low,” said Westerman.

“The entire industry is focused on managing the risks in the coming summer, especially during periods of high demand combined with power generation outages and low renewable production, but some risks will remain.”

He added: “Plans also exist.

And these plans, effectively executed, for new generation and storage to back up that new renewable energy have the potential to mitigate those reliability risks for the entire ten-year outlook. ‘

Shadow Energy Minister Ted O’Brien denounced the government for its “radical experiment” to replace fossil fuel energy in the power grid with renewable energy.

“Australia now pays one of the highest prices for electricity in the world,” he said.

‘But they have no guarantee that if they flip the switch at home, the lights will come on at all.

“This is the risk we are in now, and this is a direct result of the Labor government’s policies.

“This is a radical experiment on Australia’s energy system under the Labor government, and it ends badly.”

Federal Energy Secretary Chis Bowen stressed that the risk is minimal and only equal to one eight-hour outage in five years.

He said the state and federal government are working with industry to minimize the potential impact.

The AEMO called for urgent new investments in renewable energy sources to fill the gap left by the planned closure of coal-fired power stations, otherwise they risk outage.

The problem has been exacerbated by the fact that a number of coal-fired power plants have been shut down at end-of-life due to breakdowns, amid weathermen’s warnings of a sweltering summer ahead.

“All governments are working with AEMO to ensure that our network is as stable as possible ahead of a very hot summer,” he said.

The warnings come as reports from Tuesday predicted the cost of the Snowy Hydro 2.0 project to rise to $12 billion or more.

The major energy project, announced in 2017 under former Coalition Prime Minister Malcolm Turnbull, is expected to play a key role in Australia’s clean energy transition.

High construction costs and other challenges have already pushed back the 2021 completion date, negating the original $2 billion estimate of the project’s cost.

Snowy Hydro 2.0 will connect two dams in southern NSW via nearly 30 km of tunnels and a new underground power station.

The project is intended to function as a massive battery by using excess wind and solar energy to pump water up the mountain before releasing it during peak periods to provide power to the national grid.

The project plays a key role in the government’s ambition to make the electricity grid 82 percent sustainable by 2030.

“It’s a big step, but it’s also achievable,” added Energy Secretary Chris Bowen.

‘We provide the support to get the sustainable energy onto the electricity grid.’