Plan to stave off summer blackouts

DIESEL generators will be hooked up to Victoria’s energy network in the coming weeks as part of a last-ditch effort to keep the lights on this summer.

The new generators are part of a battle plan providing backup power to guard against blackouts in heatwaves.

They will provide up to 100 megawatts of electricity if required, enough to power an estimated 40,000 households during peak periods.

The Australian Energy Market Operator has secured the extra diesel generation as part of efforts to shore up Victoria and South Australia’s energy supply amid warnings of potential shortfalls after the closure of the Hazelwood coalfired power station.

Worst-case scenario forecasts show homes could face having their power cut in extreme weather during summer.

It is understood AEMO will announce the full scale of its electricity insurance program later this month, which is designed to provide enough cover during extended periods of hot weather.

The “reliability and emergency reserve trader” is expected to tie in deals with energyintensive businesses to power down at times of peak demand.

The agreements, which are in the final stages of negotiations, could also include energy generators bringing more capacity online as required.

Demand management schemes, which reward households and businesses for using less power at peak times, are another element of the package.

AEMO’s decision to bring in diesel generators is a slap in the face for Victorian Energy Minister Lily D’Ambrosio, who said earlier this year: “Victoria has more than enough capacity to meet our energy needs.”

She also said the State Government was “not considering any diesel back-up because we are building the generation and storage necessary to protect Victorian consumers”.

Ms D’Ambrosio said yesterday the measures being put in place by AEMO occurred “on a regular basis when an extreme summer is forecast”.

“(It) last took place in 2014 under the previous Liberal government, when Hazelwood was still in operation,” she said.

The costs of AEMO’s program will predominantly be paid for by energy retailers.