Bushfire brings power price fear
Bushfire brings power price fear
11 February 2014
published by www.smh.com.au
Australia — Bushfires in Victoria’s energy-rich Latrobe Valley have shut down most of the generators at one of the state’s biggest power stations.
Only two of Hazelwood’s eight generators were operating on Monday after the inferno knocked out a power line to its open-cut coalmine.
Hazelwood supplies up to a quarter of Victoria’s energy demand, and more than 5 per cent of Australia’s electricity requirements.
Electricity analysts said it was too early to say what effect the blaze would have on spot power prices, but they would not be surprised if there was a temporary spike.
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Trevor Rowe, a spokesman for Hazelwood’s owner GDF Suez, said the company was working with electricity supplier SP AusNet to restore power.
Mr Rowe said once power was restored, it would take six to eight hours for the plant to become fully operational again.
”It’s not like flicking a switch,” he said. ”We have to dig out the coal and then get it onto the conveyors up to the plant.”
The fire cut power to the mine’s two substations.
”We have replaced quite a few burnt-out poles and cross arms,” he said. ”The fire is still going.”
The blaze has spread to about 5000 hectares near Morwell, which is about 150 kilometres east of Melbourne.
A State Emergency Control Centre spokeswoman said high-voltage power lines and a Hazelwood substation were under threat.
Mr Rowe said the fire had entered a non-operational part of the coalmine, which he expected to take ”some days” to extinguish. But he said the power plant and its main mine were safe.
”It is a considerable distance away,” Mr Rowe said.
About 216 firefighters are battling the inferno. They have also been dispatched to the nearby Yallourn Power Station, which supplies about 22 per cent of Victoria’s total electricity needs.
Emma Tyner, a spokeswoman for Yallourn’s owner Energy Australia, said while the fire had entered an unused section of its coalmine, the plant was operating as normal.
”Our resources are focused on protecting our mine and assets from the fire,” Ms Tyner said.
”We remain on high alert and are working to contain fire activity in the unused areas of the mine.”
Morgans senior analyst Roger Leaning said that any disruption to electricity supplies could fuel a short-term blowout in spot power prices.
”Anecdotally, any interruption in power supply you would think, particularly in conditions conducive to bushfires would potentially have some form of impact to electricity pricing,” he said.
