Originally posted by logcoVictoria's demand has gone up to...

  1. 12,476 Posts.
    lightbulb Created with Sketch. 2

    I think you have been misinformed.

    There are no diesel generators at Hazelwood. They were at the old Energy Brix site for about 3 months. AEMO says that they don't need them this year so they aren't coming back.

    I don't believe they were actually used last year as the demand didn't get high enough.

    Why did power prices go up post Hazelwood ?

    Because of a greater reliance on gas fired generation, particularly in SA. They had to compete with the Gladstone exports .

    Not enough gas, up goes the price.

    So, building more gas fired generation isn't the answer now. It would drive power prices higher most likely.

    Looks like we aren't getting much new gas into the market anytime soon so gas generation isn't really an option except for peaking when it is expensive anyway. That's why AGL and others are most likely going to import LNG into Victoria.

    The rollout of renewables is replacing the gap left by Hazelwood and others. The missing part of the puzzle is storage. Once storage gets to a reasonable size things will calm down.

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