Energy grid not ready for Eraring coal plant's closure, AEMO says
Eraring is scheduled to close in 2027. (Shuttershock: Harley Kingston)
In short:
AEMO warns the energy grid is not ready for the closure of the Eraring coal plant.
The rise of rooftop solar has raised the threat of surges that could cause widespread blackouts without supporting infrastructure.
What's next?
Infrastructure to stabilise the grid is not due to be installed until after 2027, when Eraring closes.
The energy grid is not ready for the closure of the Eraring coal plant, the energy operator has warned, raising the threat of widespread blackouts in eastern Australia.
The Hunter Valley coal plant's life had already been extended from a planned closure of 2025 to 2027, at a cost to taxpayers of up to $225 million a year.
The Australian Energy Market Operator (AEMO) has warned, however, that while there are enough renewables in the pipeline to cover its closure, supporting infrastructure to keep the grid stable is not expected to be ready.
"Coal-fired power stations are retiring, and this is not new news. Ten have retired since 2012, and the remaining fleet are getting old," AEMO chief executive Daniel Westerman told AM.
"[And] there are 4 million homes out there with rooftop solar that have been the driving force of the energy transition. Sometimes the flood of that power from rooftops can create a bit of a challenge for how the system operates.
"We need to make sure that the grid has a steady heartbeat."
Mr Westerman said AEMO had been warning of the need for investment into infrastructure to stabilise the grid since 2021.
The flood of daytime power from rooftop solar poses a risk to the grid without supporting infrastructure. (ABC News: Matt Roberts)
But he said necessary technology like synchronous condensers, which help to absorb reactive power and keep the grid stable, is not due to be installed until after Eraring's closure.
Without them, there is a risk of system failures that, while deemed low probability, could have "cascading" impacts.
"The period of infrastructure renewal and technology change in the [National Energy Market] presents a heightened risk profile for system security," the report reads.
"AEMO may be forced to intervene to maintain system security at times when the market does not provide sufficient system security. These interventions may include contracts, directions and, if required, more severe measures.
"Such interventions may come at a considerable cost to consumers."
However, Mr Westerman said the report laid out "extreme events", but the government, Origin Energy and Transgrid were working collaboratively to ensure there was no disruption to consumers.