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COAG Energy Council monitors SA power market


Source: AFR, 2 Nov 2015

State energy ministers are monitoring instability in South Australia's renewable energy-dependent electricity market, which experts fear could spread to other states as their share of wind and solar power increases.

Heavy industrial users of electricity in South Australia have been hit with huge rises in wholesale electricity prices in recent months as some coal-fired generators have withdrawn from the market and the Heywood interconnector with Victoria's brown coal generators has been out of action while it's capacity is upgraded.

Australian Energy Market Operator (AEMO) chief executive Matt Zema warned last week the problem would get worse as the share of renewables increased and more coal generators withdrew. Energy experts said the problem could spread to other states as they followed in South Australia's footsteps.