Longer notice period for generator closure needed

Energy Networks Australia is calling for an increase in the notice period companies are required to provide the market when closing electricity generators.

In its submission today to the Australian Energy Market Commission, Energy Networks Australia has recommended the time-of-closure notice be extended from three to five years to allow networks enough time to build infrastructure to support new electricity generation.

Energy Networks Australia Chief Executive Officer Andrew Dillon said giving the market more time would ensure the whole system could cope when existing generation was retired.

“Three years may be enough notice when the replacement generation is easily incorporated into the existing grid, but it’s a tight squeeze if the retirement triggers a need for new infrastructure such as interconnectors,” he said.