There are challenging times ahead, says Australia's energy minister

Photo Source: By Crawford Forum

Australia's energy producers are struggling to maintain enough supply of electricity and gas, according to Energy Minister Chris Bowen.

The energy shortage on June 13 narrowly averted widespread blackouts in Queensland and New South Wales.

Power supply in both Australian states was threatened following a spike in wholesale electricity prices from a confluence of factors, resulting in the introduction of an energy price cap of $300/MWh (US$208/MWh). Consequently, the market for electricity has not been profitable enough for power suppliers to bid.

Following the companies' actions, the Australian Energy Market Operator took action and forced them to continue producing and selling electricity.

“We will be in for a bumpy period. There is no doubt about that,” he told the Seven Network. “We are working very hard to avoid any blackouts and load shedding, and we have done that so far.”

14 June 2022