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According to the Australian Energy Market Operator (AEMO), which runs the National Electricity Market (NEM) on the east coast, load shedding is a way of keeping the system stable.
In truth, there are many ways the operator can keep the system stable, but load shedding is the most extreme tool at its disposal.
Electricity is like most other commodities in that it is about supply and demand, the latter of which is known as "load" in industry jargon.
But unlike just about any other good, supply of electricity has to match demand almost perfectly at all times. Margins of error are tiny.
Fears about blackouts due to a shortage of energy in Queensland did not eventuate last night but the Sunshine State is not the only one with warnings ahead.
Such rigour is required because power, while so essential, can also be dangerous to people and appliances.
Think of the electricity system as a generator at one end, a user at the other end, and a highwire in between.
The aim of the game is to keep the highwire perfectly stable by exactly matching the user's needs with the generator's output.
Too little supply and the wire will drop.
Too much power and the wire could overload.
Either way, the consequences of failure are serious.
They inevitably trigger safeguards at the generator that force it to switch off, or trip, to prevent even more drastic consequences such as an explosion, for example.
A grid such as the NEM, which services more than 10 million customers in the eastern states, is at a vastly bigger scale.
But the principles are the same.
Across the east coast, but but particularly in Queensland and NSW, a shortage of supply has run headlong into spike in demand as people increase their energy use during a cold snap.
The causes of the supply squeeze are many and various.
For starters, along the eastern seaboard a number of coal-fired power stations are offline.
These include generating units at AGL's Bayswater and Liddell coal plants in NSW and Loy Yang A asset in Victoria, along with the Queensland government's Callide C power plant.
On top of this Australia's largest coal-fired power plant, the 2,880-megawatt Eraring plants in NSW owned by Origin Energy, has been hit by a shortage of coal supply.
Some of these outages were expected — plants are periodically taken offline for maintenance — but others were not.
And when you tally up the capacity of the missing coal units it is a big chunk of the generation in the NEM that would normally be available.
Coal is still the mainstay of the east coast power system but its prices have been soaring. To add to the supply woes, Russia's invasion of Ukraine and the consequent ructions to global energy markets has put a rocket under coal and gas prices.
For many of the generators operating in the east coast, which is one of the world's biggest exporters of both commodities, the turmoil has left them heavily exposed to soaring fuel prices.
A final straw is related to both of those factors and came to a head on Monday when AEMO issued its dire warning about the risks of blackouts.
Under the NEM's rules, price caps for generators can be imposed when costs in the wholesale power market breach maximum thresholds.
In what's believed to be a first, that threshold was breached on Monday in Queensland, and then New South Wales, where wholesale prices have been soaring in response to the supply crunch.
Perversely, however, the imposition of a price cap prompted a bunch of so-called peaking power providers such as fast-start gas and diesel-fired plants to pull back from the market over concerns the high cost of those fuels would lead them to run at a loss.
By pulling back from the market and risking blackouts, the generators helped trigger extraordinary powers that allow AEMO to instruct them to run but also provide for greater levels of compensation.
originally posted by: Brotherman
a reply to: IAMALLYETALLIAM
it would be amazing if you said your heaters run by politicians and then you post a pic and you barely see a shoe almost stuffed into the heater but not so that its open enough to let it catch a little fire =P
originally posted by: Brotherman
a reply to: IAMALLYETALLIAM
it would be amazing if you said your heaters run by politicians and then you post a pic and you barely see a shoe almost stuffed into the heater but not so that its open enough to let it catch a little fire =P
originally posted by: anonentity
a reply to: IAMALLYETALLIAM
The power supply is an essential industry that should be run by the government. They have sold it off, to a multinational who cares firstly for profit. The coal will still be getting delivered to China as you wonder where your fireplace went as you burn your carbon credits to stay warm. Ironically I am in NZ and am burning Australian gum on my wood heater, So far this winter I have had one fire and use four bits of the split log which keep the house warm all night. I am praying that common sense returns to your fair land soon. If they put our electricity prices up, I will first install a wetback. If they still keep going up I'll just get a few solar panels and tell them to go # themselves.
There are some aspects of this explanation that don't quite add up to me although admittedly my understanding of this topic is rudimentary at best.
originally posted by: surfer_soul
a reply to: IAMALLYETALLIAM
There are some aspects of this explanation that don't quite add up to me although admittedly my understanding of this topic is rudimentary at best.
That’s because it is nonsense. Any appliance will only draw the “load” it requires no more and no no less. Trip switches are there for shorted or grounded circuits and do effectively protect from these faults.
They will use people’s ignorance of how electricity works as an excuse to ration and charge more for energy, all part of the great reset.
originally posted by: anonentity
a reply to: IAMALLYETALLIAM
Apparently, Australian gum trees grow about twenty times faster over here. My Daughter and her hubby planted the drive with them about three years back Tasmanium gums, they are up about eight feet now. They seem to be getting organized for the "Future" they are totally off-grid. Check this out truckers in the states cant get diesel it's getting worse. this was on tic toc www.bitchute.com...
Australia is on the "precipice" of a UK-style energy crisis that could send many of its power retailers broke and fuel a surge of households unable to pay their bills, a leading expert has warned.
The soaring cost of wholesale energy has triggered widespread alarm among observers and there are fears a significant chunk of Australia's retail electricity market will be wiped out in the crunch.
...
"The wholesale energy market has just become so extreme that we're now seeing a situation where wholesale prices are above retail prices," Mr Blincoe said.
According to Mr Blincoe, customers of ReAmped who didn't find a different supplier were facing a doubling of prices from July.
Australia on the 'precipice' of a UK-style energy crisis as soaring costs push retailers out
originally posted by: ChaoticOrder
a reply to: IAMALLYETALLIAM
I read an article about this a couple of weeks ago and I was shocked to learn wholesale energy prices are above retail prices. That means retail suppliers are operating at a loss, as you point out, it seems they are being instructed to keep operating at a loss. And if they are also being compensated for those losses by the government, what that means is tax payers are really covering the extra cost without knowing it.
It seems they are trying to suppress some aspects of inflation, but eventually we will feel the full impact. I highly doubt this situation can go on much longer, prices will have to rise or the energy market could implode. But if energy prices double as predicted, then we'll have another crisis on our hands. We have just entered winter, and people aren't going to be happy when they see their electricity bill at the end of winter.