From RenewEconomy, June 1:
The fossil fuel crisis affecting Australia’s energy markets took a new twist on Wednesday when Origin Energy, the owner of the country’s biggest coal generator, confirmed it could not source enough coal to keep the 2.8GW Eraring plant in NSW operating at anywhere near full capacity.
The supply problems add to the soaring coal and gas prices, and coal plant outages, that have driven the electricity markets, and analysts, crazy in the past few weeks, resulting in the collapse of some energy retailers, “house full” signs on others, and skyrocketing bills for consumers.
In its quarterly update, Origin confirms its view that the price rises were being driven by coal plant outages and high fossil fuel prices, and warns it will continue in at least the near term until more renewables can be brought into the grid.
“The challenges with coal delivery to Eraring Power Station are expected to persist into FY2023,” it says in its quarterly update.
“This is expected to result in a material increase in coal purchasing costs given high coal prices and continued exposure to high spot electricity prices....
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