Australian authorities have been given the power to block coal exports if the resource is needed to alleviate the country’s crippling energy crisis as a last resort to avoid the risk of blackouts.
Rising coal and gas prices, along with disruptions to obsolete coal-fired power plants, have plunged the market into turmoil this week, forcing the Australian energy market operator to take control of the wholesale market by ensure a reliable supply of electricity to the eastern states.
The New South Wales government on Friday invoked emergency powers to force miners operating in the state to redirect coal going abroad to local generators. The precautionary measure was taken to strengthen energy security on the advice of AEMO.
“We’re just giving ourselves all the leverage we need to give the community the certainty that we’re doing everything we can to keep the system running,” said Matt Kean, energy minister and treasurer of New South Wales. the most populous country in the country. state.
The energy crisis has highlighted the failure of Australia, one of the world’s largest producers of fossil fuels, to prepare for the transition to renewable energy sources by investing in the modernization of the country’s electricity infrastructure, say the analysts.
“We are in an envious position. It’s a global story, as there is a shortage of gas and prices are skyrocketing, but for Australia it’s combined with disconnecting coal-fired power plants, “said Ben Oquist, executive director of the UK’s think tank. ‘Institute of Australia.
The crisis has shown that the lack of preparation for renewable energy to become a larger part of domestic supply was affecting consumers in the country in the form of higher bills and potential blackouts, he added.
The government this week called on consumers in New South Wales, including Sydney and the coal-rich Hunter Valley, to save energy by turning off the lights and using appliances in the evening to avoid the risk of blackouts.
The crisis has coincided with an unusually cold climate, with many consumers forced to use independent heaters due to the lack of insulation and central heating in many homes.
Repression of energy supplies has increased pressure on Prime Minister Anthony Albanese, who took office less than a month ago and pledged to lower energy bills during his election campaign. It has also pledged again to a stronger reduction in carbon emissions by 2030 than the previous government and to stimulate more investment in renewable energy.
“What we are paying for here is 10 years of delay and denial. We have not had the necessary investment in the energy sector because we have not had the investment security that companies require,” he told local media. about $ 52 billion in private sector investment over the next few years in new energy. ”
Scott Morrison’s previous government was cautious with plans to speed up the energy transition by advancing the closure of coal-fired power plants due to concerns about rising consumer prices and supply.
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Morrison also launched a “gas recovery” plan during the pandemic, which provided grants and subsidies for new exploration projects.
Oquist said the former prime minister should have promoted investment in the electricity grid and storage to promote renewable energy. “We were supposed to have a gas recovery, but I think we had a gas-induced catastrophe,” he said. “Morrison put political muscle on gas during the Covid, but it has left Australia in a very vulnerable position.”
Australia is one of the largest gas producers in the world, but the fuel is mainly exported. Albanese said calls to build a gas reserve for domestic use had to be contrasted with increased risk if the industry broke contracts.