Diesel generators supply energy network over summer in Victoria

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 a widescale effort to shore up Victoria and South Australia’s energy supply, amid warnings of potential shortfalls after the closure of the Hazelwood coal-fired 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 to during extended periods of hot weather.

The “reliability and emergency reserve trader” is expected to tie in deals with energy-intensive 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 energy security 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 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, including the new diesel generators, will predominantly be paid for by energy retailers, although some charges could be passed on to consumers.

Plans for two large-scale batteries to help secure Victoria’s power supplies this summer are in disarray, with a $25 million proposal by the Andrews government still in the planning stage months after construction was due to start.

Touted as a “game-changer” by Energy Minister Lily D’Ambrosio when she and Premier Daniel ­Andrews announced the investment in March, no successful bidder has been announced for the storage initiative.

The project, which is meant to deliver two 20-megawatt batteries with combined capacity of at least 100MWh, was due to start construction in August so it would be ready for peak demand in January.

The state will now rely on diesel generators pumping up to 100MW of power into the grid to guard against blackouts during heatwaves. It is understood the government is still assessing the bids to provide the batteries, but a spokesman for Ms D’Ambrosio yesterday declined to answer questions about the delay and whether the battery plan would proceed.

“We’re making sure Victoria is equipped with the next generation of energy technologies that will support a resilient energy system,” the spokesman said.

The batteries were to be installed in western Victoria, and each would be capable of powering a town such as Bendigo or Ballarat for up to four hours during a peak demand period.

Opposition energy spokesman David Southwick said the Andrews government was “delivering a third-world energy policy” and changing its policy on the run.

“These are desperate policy ­announcements by a government who simply can’t figure out how to solve the problem they created in closing down Hazelwood and taking 22 per cent of energy out of the market,” he said.

Experts have previously questioned the business case for large-scale storage in Victoria and whether $25m would be sufficient to pay for it. The government has claimed energy storage will play a “vital” role in integrating renewable energy into the network and improving grid reliability.

“This initiative will highlight Victoria’s position as a leader in managing the transition to a secure and modern energy system through deployment of new energy technologies,” the state’s Environment Department said in an information packet for potential bidders.

Clean Energy Council chief executive Kane Thornton said the batteries would play an important role in keeping the power grid stable and secure if installed. “In combination with new pumped-hydro and existing hydro, batteries will give us more flexibility to address peak demand for energy and deliver a cleaner and more ­affordable energy system,” he said.

AGL Energy has flagged plans to build a 250MW battery — which would be the world’s biggest battery and more than twice the size of the 100MW plant being built by Tesla in South Australia — at the site of the Liddell black- coal power station.

The federal government last month unveiled the National Energy Guarantee, which attempts to align climate and energy policy by obliging retailers to buy certain amounts of energy from ready-to-use power such as coal, gas, pumped hydro and batteries, and from renewable sources such as wind and solar to lower emissions.

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Created on Dec 10th 2017 00:14. Viewed 345 times.

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