Sure, no-one likes a blackout. But keeping the lights on is about to get expensive.

Author: The Conversation   Date Posted:2 September 2020 

A new official report shows blackouts in eastern Australia’s grid this summer are unlikely. While that’s welcome news, it casts doubt on the wisdom of a recent government decision to tighten electricity reliability standards – a decision that will cost consumers.

The report from the Australian Energy Market Operator, published this morning, is known as the Electricity Statement of Opportunities. It says no “unserved energy” is expected this summer and tight reliability standards will be met for the foreseeable future. This is largely due to increased installations of renewable generation, the return to service of a few coal plants after maintenance and lower electricity demand due to COVID-19.

For the first time, reliability was assessed against new standards substantially tighter than the last. State and federal energy ministers quietly agreed to tighten the standard earlier this year, and just last week the change was finalised.

While electricity supply is expected to be fine this summer, beyond that reliability will deteriorate, particularly for New South Wales, as old power plants close. That’s when the new standard will bite: a grid without power cuts is impossible and expensive.

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