Did AEMO allow S.A. grid to fail? It's an open question, says minister | RenewEconomy

Did AEMO allow S.A. grid to fail? It’s an open question, says minister

Did AEMO allow the S.A. grid to fail. “I don’t know”, says energy minister, after witnessing measures to protect NSW from possibility of failed coal generator.



Did Australia’s Energy Market Operator allow South Australia’s grid to fail when it chose not to take any pre-emptive action in the face of storms that eventually led to the system-black last September, and so sparked a nation-wide debate about the merits of wind and solar energy?

It’s been a conspiracy theory doing the rounds for some time. Certainly, it was one that many in the fossil fuel industry were content to see happen, because it allowed them to further entrench their own interests.

But a deliberate act? South Australia energy minister Tom Koutsantonis says he isn’t sure, but he’s not real to give AEMO the benefit of the doubt.

“I don’t know if they deliberately allowed it to fail,” he said in response to a question from RenewEconomy at a press conference in Adelaide on Tuesday to announce the state’s new energy plan.

But he did say this, with some degree of bitter irony: “They were very keen to see how their interconnector would do in strong winds.”

Readers will remember that the system black event occurred after tornadoes tore down three major transmission lines, leading to huge voltage swings, and the failure of the inter-connector to Victoria.  With no extra back-up generation put in place in South Australia, all power was lost.

Contrast this to recent events. As revealed by RenewEconomy on Monday, AEMO went to great lengths to protect the NSW from any blackout or load-shedding in January, when at the peak of a heat-wave it restricted transfers on the main interconnector to Queensland from NSW to just 150MW, down from 600MW.

This, AEMO asserted, was a move designed to protect NSW consumers in case the country’s most modern and efficient coal fired generator, the 750MW Kogan Creek plant in south west Queensland, tripped and sent a voltage collapse rippling through the northern NSW market.

Dialling down the interconnector meant that AEMO had the flexibility to respond to any events. And Koutsantonis wishes that AEMO had been similarly cautious when the storms were sweeping across South Australia on September 28. The operator allowed the inter-connector to continue at full pelt (also 600MW) and dialled up no emergency back-up within South Australia in case anything went wrong.

“The first thing I would do is to contrain the interconnector,” Koutsantonis told journalists when asked what he could have done to reduce the effect of the blackout. “I would have done everything I could to minimise it (the risk). AEMO didn’t.”

The final report on AEMO’s actions on the system black event is to be released – by AEMO – at an event in South Australia later this month.

Koutsantonis suggested he was more interested in subsequent reports by the Australian Energy Regulator and the Australian Energy Market Commission. “I’m sure AEMO won’t criticize their (own) behaviour one bit,” he said.

South Australia was dealt a second blow in February, when AEMO “got its weather forecasts wrong” and failed to plan for a heatwave that everyone but its own staff appeared to know was coming. The result was rolling blackouts that affected 90,000 people and set off another political storm.

In NSW, AEMO gave three days notice and voluntary measures and demand reductions were put in place well in advance. Koutsantonis wishes South Australia had been afforded a similar courtesy.

It is this lack of faith with the market operator, in fact the whole National Energy Market, that has underpinned the South Australia government’s new energy plan.

Koutsantonis will invest powers in himself to do what he says AEMO failed to do – ensure there is sufficient supply to meet demand. He and premier Jay Weatherill say the decision to cut power rather than order an idle gas generator to switch on February 8 was a “disgrace”.

Nor are they impressed with the energy market in general, accusing the private owners of generators of putting “profits before people,” which is why the government has decided to build a $360 million, 250MW gas generator, to act as an emergency back-up.

They accused the generators of deliberately withholding capacity, a major factor in pushing baseload wholesale electricity prices above $100/MWh in South Australia, and even higher in other states.

That’s why, Koutsantonis says, they will introduce more competition. The first cab off the rank will be the battery storage plant of at least 100MW – a tender will be held soon – and the next cab will be a new generator commissioned in a tender for the government’s own direct electricity needs. That new generator could be gas, or solar towers with storage.

And finally, they are not impressed with the state of the current technology. Weatherill described the state’s biggest gas plant, Torrens Island, as an “old clunker”.

Its failure two weeks ago, triggered the tripping of the Pelican Point gas plant. Koutsantonis says he still hasn’t got a good reason why that happened, or why Pelican Point did too. He even compared it to drunken men, one one vomited, it was inevitable another one did too.

And he was also critical of plans to upgrade the network on the same weekend as one of the biggest in the South Australia calendar – with the start of the festival the Clipsal 500 motor race, and other events.

The only good news coming out of that big trip – which sparked a loss of generation bigger and quicker than the September 28 system black, was that the wind generators sailed through untouched, and unmoved.

Even though the interconnector was briefly overloaded, the stability of the wind generators, if not the two biggest gas plants, ensured that another system black was avoided.

In the meantime, the state is developing its own energy plan, almost as though AEMO and the market regulators and rule makers in the eastern states didn’t exist. “We have to look after ourselves,’ Weatherill said. “The market won’t do it.”

But they know that whatever happens, the rebound hits the politicians hardest. On Monday night, the Adele concert was interrupted when the lights went out, this time because someone pulled a plug out of a socket.

One Nation Senator Malcolm Roberts blamed the state’s renewable energy target, and even recorded this stunning video to make this point. (Viewer warning, your sanity is at risk).

“I can’t be blamed for a roadie pulling a plug out,” Weatherill protested. “I’ve been blamed for a lot of things, but think I can’t be blamed for that one.”





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  1. GlennM 4 years ago

    It is almost all out war in the Electricity Markets in Aus.

    The first causality of war is the truth. The Labour Govt has correctly recognized that others cause the problems but they get the blame, unless they can substantially fix the problem and soon they will pay dearly. I have no great sympathy for politicians but the biggest losers will be SA citizens and the wider RE market world wide. That is why this will be a dirty (no pun intended) fight with the winner takes all. Their plan announced today is a good start..but there will be push back and they will need to do much more before next summer. everything from more rooftop solar and storage to gridscale new producers etc.

    Can they incentivize more roof top, bring in CEFC and Arena to compliment their own efforts ?

    And where is the clever dude who did the ACT tenders now ? does he need a second job ?

    • nakedChimp 4 years ago

      Wasn’t he over in Vic or NSW to help them there to get such tenders organized?

      • Kevfromspace 4 years ago

        Yes – Simon Corbell is now the Renewable Energy Advocate for Victoria. He is advising them on the design of their reverse auctions for new renewable energy generation. Off to a great start, in my opinion.

  2. Hayden 4 years ago

    Well, I’m not usually a conspiracy theorist, but I’m mindful that a lot of politicians, organisations and corporations would benefit enormously from rubbishing South Australias pioneering efforts. Doesn’t require a royal commission of course, but boy, it would be interesting.

    And yes, where is that clever dude from the ACT.

  3. wmh 4 years ago

    I fondly remember the days when electricity generation and supply was run by the Government and experienced and loyal Engineers ran the system to maximise reliability at a sensible cost. The only times we lost power was when tree branches would bring down a street power line in a storm. Re-nationalise now!

  4. FeFiFoFum 4 years ago

    Wow, what a strange course of action.
    A bet either way with a mix of FF and clean energy.

    I am surprised they went for the centralised gas generator, as all the latest technology is pointing to distributed generation and storage at the customers ( load) premises.
    Two trials running is SA using this arrangement to form virtual power plants, and this could be magnified to build bigger distributed storage capacity.

    $350 million would buy a lot of incentivised solar & battery systems.

  5. Mark Buskens 4 years ago

    Minister definitely makes a fair point. I was pretty shocked that they don’t constrain the interconnector to give it head room to deal with large system disturbances during storm conditions.

    By doing so it would have the natural affect of increasing inertia & distributing generation in the South Australian Grid also.
    As the constraint would lead to Spinning up more Gas Generation. This would also lead to a slower rate of frequency change hopefully giving Under Frequency Load Shedding more of a chance to operate.

    The issue is Cost vs Security. Constraining the interconnector leads to a less open market and higher costs.

    Either way I think it deserves at least a technical response, while we are considering all the outcomes.

  6. Ray Miller 4 years ago

    Interesting theory with an element of truth? The AEMO operators listen to the messages being sent to the ether and it must be very hard to make objective unbiased decisions with elements of wishing for a simple uncomplicated life. Maybe like a cricket team when the confidence is lacking you create the odds against yourself (and SA) and find yourself all out for under two figures. Maybe with a new captain in AEMO starting soon, she may be able to pull the plug on the control room TV, the phone line to the accountants, block the twitter feed from Malcolm Roberts, and give the team a much needed talk. About ‘what’ is the question.

  7. Andrea 4 years ago

    After the Sept 28 system black, SA required RoCoF to be limited to max of 3 Hz/s. Presumably this is done by limiting imports when there is a lot of wind power, meaning that there is more local synchronous generation. But on Mar 3, several synchronous generators were lost. Interconnector overloaded and had it failed RoCoF would have exceeded 8 Hz/s. Hence could have had another system black.
    Seems to be that the problem is having a large interconnector. It’s good for backup, but not good when you use it. ?

  8. solarguy 4 years ago

    In my mind, conspiracy confirmed. Apart from what the SA minister has said, just consider this, after every event that occurred, Frydenburg, Turnbull and others were quick to blame renewables. There wasn’t any explanation from the market or the generators themselves as to why things failed or refused to operate generators when needed.

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