The Australian Energy Market Operator (AEMO) imposed a rare cap to halt runaway wholesale power prices in Queensland,which crimped the profit margin of some generators,which resulted in them offering less power for sale in the market.
AEMO was forced to make emergency interventions in Queensland on Monday to compel power companies to switch on additional units,easing the supply crunch by the afternoon.
“To maintain power system security and reliability,AEMO is using its powers under the national electricity rules,including to direct generators,to alleviate lack of reserve conditions,” a spokesman said.
Queensland’s electricity network operator,Powerlink,also urged homes and businesses to limit their power consumption during peak demand times in the morning and evening.
AEMO,however,remains on high alert over potential shortfalls in NSW hitting as early as Tuesday evening.
Melbourne University energy expert Dylan McConnell said volatile power market conditions in NSW may force the market operator to intervene like it did in Queensland.
“It’s looking pretty dicey,but with the dynamics in the market at the moment who knows?” McConnell said. “It’s also hard to look too far ahead because the situation is so unpredictable.”