ETU Media Releases

Thousands of NSW residents face blackouts as forecast electricity demand surges ahead of supply

Posted on 09-2-2017


Thousands of NSW power consumers may be forced to endure blackouts this afternoon after the national electricity market operator warned of a looming power shortage as heatwave conditions cause demand to far outstrip supply.

The Australian Energy Market Operator has issued a warning that between 3pm and 5.30pm this afternoon NSW faces a shortfall of 419 megawatts of power even after importing large amounts of electricity from neighboring Victoria and Queensland.

Unless additional generating capacity can be found, AEMO may be forced to repeat the load shedding order that saw 90,000 homes in South Australia have their power supplies cut earlier this week.

The Electrical Trades Union said the NSW Liberals and Nationals were directly responsible for this looming power crisis as a result of the privatisation of electricity generating assets in 2014.

ETU deputy secretary Dave McKinley highlighted the case of Wallerawang power station, near Lithgow, which was previously capable of producing 1,000 megawatts of baseload power but was closed down shortly after being purchased by Chinese-owned company Energy Australia.

“In 2014, the NSW Liberals and Nationals privatised our state’s publicly owned power stations,” Mr McKinley said.

“One of the first actions of these new private owners was to close Wallerawang, resulting in a substantial reduction to available electricity supplies and severely limiting the state’s ability to meet peak demand.

“If Wallerawang was still operating today, we would not be facing the load shedding and forced power blackouts that the national energy market operator is forecasting.

“The Liberals and Nationals told everyone that electricity privatisation would mean lower power prices and better services, but what we are likely to see today is the clearest possible evidence that the people of NSW were lied to.

“Electricity is an essential service, but when profit-hungry foreign investors take control of our public assets, they put their own interests ahead of the people of NSW, with consumers left to pay the price.

“South Australia is currently facing the same problem, with a lack of investment by the private sector in new base load electricity generation meaning higher prices for consumers and reduced reliability during times of high demand.

“We are now facing the potential for an east coast power crisis because privatisation has failed to deliver the promised outcomes.

“The current challenges in NSW have nothing to do with renewable energy generation and everything to do with private companies exploiting their power in a monopoly market while the people of NSW and South Australia are left to sweat it out.”



SOURCE: Australian Energy Market Operator forecast evening of 9 February - NSW 418MW undersupply or equivalent to 400,000 homes, https://www.aemo.com.au/Electricity/National-Electricity-Market-NEM/Data-dashboard#operational-demand