London Daily

Focus on the big picture.
Thursday, Sep 17, 2026

Energy crisis: Eight million Australians urged to turn off light

Energy crisis: Eight million Australians urged to turn off light

Australia is one of the world's biggest exporters of coal and liquefied natural gas but has been struggling with a power crisis since last month. Three quarters of the country's electricity is still generated using coal. It has long been accused of not doing enough to cut its emissions by investing in renewables.
In recent weeks, Australia has felt the impact of disruptions to coal supplies, outages at several coal-fired power plants and soaring global energy prices.

Flooding earlier this year hit some coal mines in New South Wales and Queensland, while technical issues have cut production at two mines that supply the market's biggest coal-fired station in New South Wales.

Around a quarter of Australia's coal-fired electricity generating capacity is currently out of service due to unexpected outages and scheduled maintenance.

Some electricity producers have seen their costs soar as global coal and gas prices have jumped due to sanctions on Russia over its invasion of Ukraine.

Meanwhile, demand for energy has jumped amid a cold snap and as Australia's economy opens up after Covid-19 restrictions were eased.

All of this has helped drive up power prices on the wholesale market to above the A$300 (£173; $210) per megawatt hour price cap set by the market's regulator, the Australian Energy Market Operator (Aemo).

However, that cap was below the cost of production for several generators, who decided to withhold capacity.

On Wednesday, Aemo took the unprecedented step of suspending the market and said it would set prices directly and compensate generators for the shortfall.

It also asked consumers in New South Wales to "temporarily reduce their energy usage".

Aemo has not given a timeline on when the suspension would be lifted. It said in a statement, "The price cap will remain until cumulative wholesale electricity prices fall below the cumulative price threshold."

"Aemo, as the national power system operator, will continue to monitor the situation and provide further updates should conditions change," it added.

On Thursday, Australia's biggest electricity producer AGL Energy said it expected to be able to supply more power to businesses and consumers in the coming days.

It has three units that have been out of service at its coal-fired plant in Bayswater, New South Wales.

They are among several planned and unplanned outages that have helped cause the power crisis.

AGL said that one of the units should return to service on Thursday, while another will come back online by Saturday.

Meanwhile, Australia's new Prime Minister Anthony Albanese said the crisis would be raised at a meeting with state premiers which starts on Thursday.

Lynne Chester, an energy expert from the University of Sydney, told the BBC that policymakers have been aware of the risks of ageing generators for decades.

"The sector's regulators and policy makers have ignored the escalating capacity constraints of aging generation assets, fired by fossil fuels, that dominate the sector," Prof Chester said.
Newsletter

Related Articles

0:00
0:00
Close
UK Competition Regulator Deepens Scrutiny of Microsoft’s Business Software and AI Market Position
NHS England Reforms Focus on Cutting Waiting Lists and Improving Digital Care
England Maintains Mandatory Housing Targets in Push for 1.5 Million New Homes
UK Government Plans Statutory Industrial Strategy Council to Strengthen Long-Term Economic Policy
Asthma Charity Warns of Major Gaps in Childhood Diagnostic Testing Across England
TUC Chief Paul Nowak Appointed to Bank of England Court
Bristol Opens £35 Million Deep-Tech Innovation Hub at Temple Quarter
Oxfordshire Village Votes Symbolically to Leave UK Over Asylum Housing Plan
Andy Burnham Deepens UK Defense and AI Cooperation With NATO and Canada
UK Government Announces Neonatal Safety Reforms After Thirlwall Inquiry
Bank of England Weighs Rate Decision as UK Inflation Rises to 3.1%
UK Health Unions Warn of Staffing Pressures as Public and Private Pay Growth Diverges
Rockstar Games Faces Tribunal Claims From 23 Former Grand Theft Auto VI Developers
UK Treasury Faces Tighter Budget Constraints as Borrowing Costs and Pension Spending Rise
Prime Minister Andy Burnham Sets Out Ten-Year Plan for Greater Public Oversight of Utilities
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
Scotland, Wales and Northern Ireland Leaders Coordinate Push for UK Constitutional Change
Police Tighten Public-Order Measures After Anti-Immigration Protests in Dover and Portsmouth
UK Ministers Pressed for Answers After US Diplomat Accused of Child Abuse Images Leaves Britain
Jaguar Land Rover Pursues NATO Defense Contracts for Defender Vehicles
British Service Member Dies in Road Accident While Deployed in Ukraine
George Osborne Calls for Britain to Rejoin EU Customs Union
Anthropic Chief Dario Amodei Urges Faster UK Action on Advanced AI Risks
UK State Pension Set for 3.9% Rise Under Triple Lock
UK Labour Market Cools as Payrolled Employment Continues to Decline
Reform UK’s £72 Million in Donations Faces Scrutiny Under Proposed Retrospective Funding Rules
UK Doctors Warn Expanded Pharmacy First Scheme Could Put Patients at Risk
British Airlines Cut Short-Haul Capacity as Jet Fuel Costs Rise
UK News Publishers Forecast 40% Search Traffic Drop as AI Overviews Expand
Axel Springer Wins Approval for £575 Million Daily Telegraph Acquisition
London Mayor Sadiq Khan Opposes Heathrow Third Runway Over Climate Targets
Scotland, Wales and Northern Ireland Leaders Hold Summit Seeking Greater Autonomy
UK Energy Price Cap Set to Rise to £1,723 in October
UK Treasury Warns Middle East Conflict Is Threatening Economic Growth
Labour Moves to Retrospectively Cap Overseas Political Donations After Reform UK Funding Surge
HMRC Warns Nearly Seven Million Adults Are Unclear About State Pension Entitlements
UK Parliament Passes Sovereign Grant Reform Before Conference Recess
British Rail Passengers Gain Automatic Right to Switch Operators During Disruptions
Burnham Hosts Downing Street Business Summit as UK Fiscal Pressure Builds
Labour Government Moves to Challenge £72 Million in Reform UK Crypto Donations
UK Advertising Industry Warns Wider Junk Food Rules Could Put £1 Billion in Media Spending at Risk
Cornwall Opens Devolution Talks With UK Government Over Transport and Local Services
UK Parliament Considers Sovereign Grant Reform Setting Royal Funding at £99.9 Million
Trades Union Congress Calls for Income-Based Energy Tariff Funded by Higher Bank Levy
UK Prime Minister Rejects Second Scottish Independence Referendum
House of Lords Begins Scrutiny of Bill to Lower UK Voting Age to 16
Anthropic Says Claude Was Exploited in Weapons-Related and State-Linked Cyber Activity
Institute of Directors Urges UK Government to Avoid Business Tax Increases in Autumn Budget
Rising Gilt Yields Cut UK Fiscal Headroom to About £13 Billion Ahead of Budget
UK Economy Grows 0.4% in July as Services and Technology Activity Strengthen
×