Australians Face Threats of Blackouts as Power Crisis Worsens

(Bloomberg) -- Residents in Australia’s Queensland state faced the risk of blackouts on Monday night as the nation’s power crisis shows no signs of abating.

The Australian Energy Market Operator, which runs domestic power and gas markets, issued so-called lack of reserve notices for both Queensland and New South Wales, which means demand may outstrip supply, according to a statement on its website.

Supply constraints were bad enough there may be blackouts in Queensland while the AEMO encouraged commercial and industrial power customers to reduce their usage in NSW. 

Outages at coal-fired power plants, coupled with a cold-weather snap, have caused supply problems and sent electricity prices spiraling in Australia in recent weeks. 

This has boosted demand for backup gas plants amid increased international competition for the fuel. While there’s no shortage of fuel produced domestically, much of it isn’t available within the country as Australia is one of the world’s largest exporters of liquefied natural gas.

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