Kean to force coal companies to give fuel to electricity generators if stockpiles reached dangerously low levels,but less than 24 hours later said he did not think he would use them.
“Generators that were offline have now come back online. We had a generator come online[on Thursday]. That added 600 megawatts to the system that wasn’t there the night before,” Kean said. “[The Australian Energy Market Operator] have described the energy situation as much healthier and that’s good news.”
NSW Energy Minister Matt Kean on Thursday.Louise Kennerley
Another generator is also expected to come online again on Saturday,providing further reserve capacity.
Kean met NSW Governor Margaret Beazley late on Thursday to request special authority over coal and logistics companies. If enacted,coal companies could be forced to give supply to domestic generators instead of exporting supply overseas where it would fetch a higher price.
It followed an intervention by AEMO this week to to restore calm to the increasingly volatile grid.
Kean on Friday said he had been assured fuel stocks in NSW were secure,and had sought the temporary powers only as a precautionary measure.
“We’re just putting those powers aside and on standby if we need them... it doesn’t look like we will need them,” he said. “Two days ago the system was very different. Things are moving very quickly as new generation comes back online,but we want to be prepared for every eventuality.”
Chief executive of the NSW Minerals Council Stephen Galilee said the industry was working with the government and electricity generators to guarantee coal supply and “keep the lights on for many more years to come”.
“For decades,NSW coal producers have supplied the coal needed to meet the energy needs of households and businesses across the state. We understand this responsibility and take it very seriously,” he said.
A spokesman for Centennial Coal said the company was continuing to work with customers to fulfil its contractual obligations.
Kean on Wednesday asked residents to minimise non-critical electricity usage between 5.30pm and 8.30pm. Although a short-term measure,he said it had made a “huge difference”.
He blamed the state’s ageing infrastructure for the energy crisis that resulted in the national market operator’s unprecedented decision to suspend electricity trading for the entire east coast.
“These old bits of machinery,they’re not as reliable as we’d like them to be,particularly when we need them during this time,” he said.
In a recent speech,Origin Energy chief executive Frank Calabria said coal plants still supplied 60 to 65 per cent of the nation’s electricity.
“We must act swiftly with industry and government working in concert to bring as much coal supply back into the system as soon as possible ... to put downwards pressure on the wholesale electricity price,” he told the Australian Energy Week conference earlier this month.
Kean said NSW had “enough levers” available,in addition to coal,to keep the lights on across the state.
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