The Victorian government will bank on payments made to big power users to scale back their electricity consumption during peak periods on hot days to avoid blackouts this summer.of any eastern state of being hit by blackouts and failures this summer and this risk is outside its acceptable guidelines.
“They want to be sure that even in the worst, unlikely scenarios that they – as the responsible market operator – have sufficient reserves in place to meet those unlikely and extreme circumstances,” she said.“In Victoria’s case, they have said that in the unlikely scenario where a whole range of conditions come together, that there is a very, very small potential gap of about 120 megawatts.
During periods of strong demand, the AEMO can use deals it has struck with some heavy energy users to ask them to temporarily reduce consumption and take pressure off the grid – in return for a financial incentive.