Aemo says market to resume on Thursday

Aemo says market to resume on Thursday

In a statement on Wednesday, the Australian Energy Market Operator said it had seen a clear improvement in market conditions and that it would resume trading from 04: 00 on Thursday, 19: 00 BST Wednesday. It added that it would monitor the market for at least 24 hours before making a decision to lift the suspension.

Aemo chief executive Daniel Westerman said in a televised media conference that nearly 4,000 megawatts of generation return to service have been seen since that time last week.

Australia is one of the world's biggest exporters of natural gas and coal, but it has been struggling with a power crisis since last month.

Three quarters of its electricity is still generated using coal, and it has been accused of not doing enough to reduce its emissions by investing in renewables.

All of this helped drive electricity prices on the wholesale market to above the A $300 170; $208 per megawatt hour price cap set by Aemo.

That cap was less than the cost of production for several generators who decided to withhold capacity.

Aemo suspended the market last Wednesday, and said it would set prices directly and compensate generators for the shortfall.

At the time Mr Westerman said Aemo had put the security of the grid, and kept the lights above everything else. We asked generators to bid their plant back into the system - and that is happening more - giving us greater visibility of generation in real time, he said.