The Australian Energy Market Operator (AEMO)) has warned that the state of Victoria is encountering a winter gas shortage that risks dragging the national energy market into a new crisis.
On July 18 night, the AEMO issued an industry letter warning about the risk of curtailment during peak demand.
The letter pointed out that the supply levels at the Iona gas storage facility in Victoria had fallen to record lows due to high demand amid the state’s price cap and that the AEMO would intervene if necessary.
“AEMO has determined that there is a possibility that market or operational responses may prove insufficient to alleviate the threat,” the market operator said, as reported by The Age….