Fluctuating energy demand, high prices hit South Australia

By Enterprise Monkey

The government of South Australia has asked French utility Engie to restart its mothballed Pelican Point Power Station in Adelaide amid soaring electricity prices.

National Electricity Market (NEM) prices in the state have surged above $1000 per megawatt hour (MWh) this month — even hitting the maximum $14,000MWh price on Tuesday.

South Australian Energy Minister and Treasurer Tom Koutsantonis said a combination of the planned outage of the Heywood power interconnector with Victoria, higher gas prices and harsh winter weather was to blame for price volatility in the state’s energy market.

“Engie has brought addition­al generation at Pelican Point ­online after I approached them with the request. No amount has been paid to Engie to increase generation,” Koutsantonis said.

Opposition frontbencher Rob Lucas has blamed the South Australian government’s reliance on renewable energy for the surge in electricity prices. On Monday, wind energy generated 83 percent of SA’s electricity, though Lucas blamed the “rush” into renewables without ensuring continued base load power for the state’s soaring prices.

However, proponents of renewables say clean energy is not to blame for energy woes, arguing that South Australia’s history of paying above average electricity prices is the culprit.

Follow @BizReviewAU

Read the July 2016 issue of Business Review Australia and Asia magazine

Share
Share

Featured Articles

Welcome to the New Age of the CISO

HE Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government and Dr Aloysius Cheang, Chief Security Officer Huawei UAE, on the new age of the CISO

Making the UAE the world’s strongest digital fortress

His Excellency Dr Mohamed Al-Kuwaiti, Head of Cyber Security, UAE Government, on visionary plans to build the world’s most secure digital society

World Mental Health Day – 10 apps to improve wellbeing

Employers should recognise the growing use of apps to help support mental health – here are 10 to consider on World Mental Health Day

Exec interview: Brook Sims, COO, MAC Diversity Recruiters

Leadership & Strategy

Best new books that will make you a better leader

Leadership & Strategy

5 Mins With: Jeff Li, founder and CEO of Shoplazza

Leadership & Strategy