Federal and Victorian energy ministers have declared confidence in the Australian Energy Market Operator to keep the lights on this summer as it commissions companies to provide an extra 118 megawatts in South Australia and 120 megawatts in Victoria to boost supply before the return of an El Nino weather system.
Amid expert warnings that the electricity grid will struggle to cope with the return of a hot, dry summer, AEMO confirmed it would update its summer readiness plan before it is released next month.
Australians have been told to prepare for a long, hot and dry summer this year. Flavio Brancaleone
The past three summers, which have been characterised by wetter, milder conditions of the La Nina weather system, have taken some pressure off the grid and market operators.
But last month’s Bureau of Meteorology declaration of an El Nino weather system has increased fears the electricity grid will not cope with increased demand as households and companies turn on air-conditioners.
An AEMO spokesman said it had closed its tenders for the Reliability and Reserve Emergency Trader (RERT) and Interim Reliability Reserves at the end of September.
“We’re now assessing responses and will provide further information with the summer readiness plan in mid-November,” he said.
“The interim reliability tender, responding to gaps identified in the 2023 ESOO [Electricity Statement of Opportunities], called for 118MW in South Australia and 120MW in Victoria for the coming summer.”
Both schemes allow the market operator to call on companies to put more supply into the grid or for big users to curtail their use during times of peak demand.
The total contracts can run into the tens of millions of dollars, but are often the last defence to
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