Chris Bowen says energy shortage due to ‘decade of under-investment’ in renewables

Energy and Climate Change Minister Chris Bowen blamed the previous Australian government’s approach to renewable energy investment after Australia’s energy regulator, the Australian Energy Market Operator (AEMO), took control today of the national electricity market on Wednesday.
“This is the result of a decade of under-investment in renewable energy and transmission,” Mr Bowen told the ABC on Thursday morning.
Mr Bowen said he had worked with state energy ministers to develop a “comprehensive plan” to address energy reserves.
“Last week I met with state and territorial energy ministers who agreed on a comprehensive national plan to fix this — a major step forward but a difficult one.
“We avoided interference and avoided charge-charges up to the present and yesterday was an extreme action, not taken lightly but it was a judgment that it was what was absolutely necessary to act in the best interests of the consumers to intervene and close the market and take control of what happened yesterday. ”

Mr. Bowen was the “right decision” for AEMO to intervene for the first time in the history of the national energy market, which began in 1998.

The energy minister said the intervention should be seen as a sign of the need to push in the direction of renewables and not the other way around.
“This is a crisis driven by unexpected outages at coal power stations because the fleet is aging … The previous government played for nine years and had 23 different energy policies and refused challenges and opportunities and chances for a comprehensive economic policy. “
The Australian Energy Market operator said in a note released Wednesday it had suspended electricity spot markets in NSW, Queensland, South Australia, Tasmania and Victoria until further notice.
“It has become impossible to operate the spot market in accordance with the provisions of the rules,” the operator said.

Also, AEMO will set prices for each state in the market.


However, it is not expected to push up retail prices paid by households and businesses.
“In the current situation, stopping the market is the best way to ensure a reliable electricity supply for Australian homes and businesses,” AEMO CEO Daniel Westerman said.
“The situation in recent days has posed challenges to the entire energy industry, and stopping the market would simplify operations during the major outages across the energy supply chain.”
The suspension is temporary and will be reviewed daily, and will be lifted when AEMO is confident the market will function properly.
Mr Westerman said conditions would remain tight in the coming days, especially in NSW, where consumers were urged to conserve energy “if it is safe to do so”.
“Right now, we see the market not being able to cope with all the factors thrown at it.”

AEMO is working with the industry to ensure sufficient power is available to prevent load flow across five states.

Chris Bowen says energy shortage due to ‘decade of under-investment’ in renewables Source link Chris Bowen says energy shortage due to ‘decade of under-investment’ in renewables

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