The usual system checks and balances were unable to correct the problem before the state’s energy market was sent into disarray. Cascading outages saw energy generation in Queensland nearly halve in 30 minutes. Families and businesses were left without power in the middle of the working day. Schools,hospitals,traffic lights – little was spared.
How did this happen? The full picture isn’t yet clear. One explanation is that transmission line connections “tripped”,leaving other generators unable to fill the gap Callide left behind. Regardless,the impact on prices was felt throughout the course of the day. In the early evening,Queensland wholesale electricity prices skyrocketed to $15,000 per MWh. They usually average about $50. Prices in parts of NSW were similarly high.
This is only the latest debacle in a long line of technical problems for the nation’s coal-fired generators. In December,a fire in Liddell power station resulted in energy price spikes and reliability concerns across NSW. And Victorians would remember Hazelwood all too well.
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These kinds of problems will only become more frequent with most of Australia’s coal-fired generators approaching the end of their technical lives. Many are scheduled to close in the coming decades. In the past year,these old clunkers have unexpectedly tripped over 70 times.
The impact is particularly harmful in summer when Australians use more electricity – as was the case with Liddell.
It’s only a matter of time before the next debacle. To avoid price spikes and reliability concerns,we need a plan to facilitate coal’s orderly exit from the grid and the new supply that will replace it.