7am Are we set for major blackouts?
Dec 4, 2025
Alison Reeve, the energy and climate change program director at The Grattan Institute, dives into the alarming warnings about potential blackouts as the Eraring power station prepares to close. She discusses the complexities of Australia’s electricity market, highlighting regulatory gaps rather than failures of renewable energy. Reeve also tackles rising power prices driven by external factors like war and weather, and advocates for a shift away from gas dependence while emphasizing the importance of strong emissions policies for the future.
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Stability Not Just Energy Capacity
- The Eraring closure creates a gap in system services even though generation capacity exists.
- Synchronous condensers and other stability services are delayed until 2028 while Eraring is due to close in 2027.
Use Interim Dispatch To Protect The Grid
- AEMO may need to direct gas or hydro to run more as an interim security measure.
- Expect such interventions to raise system costs while procurement and transmission upgrades proceed.
Market Design Lags The Energy Transition
- The core problem is outdated market processes, not renewables themselves.
- Regulations designed for a slow-build market haven't kept up with rapid renewables deployment.