Operator warns of summer blackouts

VICTORIANS will need costly emergency energy supplies — likely to include diesel generators — to avoid possible widespread power blackouts this summer.

Australia’s energy market operator has warned the state will be in a dire situation if it faces an extreme summer and says urgent action is needed to ensure energy supply for household airconditioners and lights.

The closure of Hazelwood Power Station has led to a “tight” supply-demand balance in the national electricity market, which has been revealed to be more vulnerable than ever to generator failure.

The worst case scenario could include load shedding — an intentional shutdown of power sources to reduce demand — which could last for four to five hours at a time.

A report to the Federal Government released today calls for the creation of emergency energy reserves over the next four years to avoid electricity shortfalls.

While the highest risk is in Victoria and South Australia this year, Victoria and NSW will also need to generate 1000 megawatts of new supply when the Liddell coal-fired power plant in NSW shuts in 2022.

The Australian Energy Market Operator confirmed it was working with the Victorian Government to connect diesel generators and alternative measures for this summer.

The cost of using emergency supplies would be passed on to consumers in the state that needed them.

The report could also halt a push from within the Turnbull government to invest in a new coal power station — warning it would be better if the owners of coal-fired generators were encouraged to upgrade their plants to extend their life.