Power supplies in Australia’s densely populated east have been tight since mid-May as around 25% of the market’s 23,000 megawatts (MW) of coal-fired generating capacity was taken out of service for maintenance reasons or unplanned stoppages. The situation has been exacerbated by disruptions in coal supplies and soaring world coal and gas prices.
AEMO, which manages electricity and gas systems and markets across Australia, said on Friday that electricity supply was sufficient to meet forecast demand for the weekend, allaying immediate concerns about possible power outages on the east coast.
Late on Saturday, the agency said on Twitter that it was aware of a “substation fire” at Tallawarra Power Station, Yallah, a suburb of Wollongong, a town about 80km ( 50 miles) south of Sydney, but said the blaze is not expected to further strain power supplies.
“We would like to reassure customers in (New South Wales) that this will not impact electricity supply,” AEMO said.
The fire is due to a mechanical failure of a redundant transformer, firefighters said. More than 60 firefighters worked to bring it under control.
More than 10,000 liters (2,600 gallons) of oil caught fire, and it will likely take several days to extinguish the blaze, the Nine news site reported.
On Wednesday, the AEMO suspended the national electricity market, taking control of electricity supply and pricing, an unprecedented measure backed by Prime Minister Anthony Albanese, who said it was necessary to curb the “games” of the system.
Since then, coal-fired generators have brought 1,900 MW of capacity back into service, the Australian Energy Council said, reducing the risk of blackouts.