Power Outages Hit Half Million in Victoria

Approximately half a million Victorians are facing power outages, with some potentially enduring days without electricity, following the shutdown of one of Victoria's major coal-fired power stations and multiple transmission line failures.

The outage, which began just after 2pm local time, has plunged large parts of Victoria into darkness, with United Energy, AusNet, Citipower, and Powercor reporting tens of thousands of customers offline across various regions.

The incident was triggered by the sudden shutdown of all four units at AGL's Loy Yang A power station in the Latrobe Valley. It's suspected that the station tripped offline after two transmission towers collapsed, impeding the flow of electricity through the lines.

According to Energy Resources Minister Lily D'Ambrosio, discussions have been held with the CEO of the Australian Energy Market Operator (AEMO) regarding the unprecedented impact of extreme weather on Victoria's power grid.

AGL has initiated efforts to bring units back online, with one unit remaining offline temporarily. However, restoration efforts are expected to take several hours as safety protocols are observed and transmission line issues are addressed.

The outage has caused wholesale power prices to soar, with Victorian prices reaching $16,600 per megawatt hour this afternoon, compared to $286.97 in NSW.

Amidst the chaos, the AEMO has been forced to implement load shedding measures to manage the shortfall in supply, exacerbating the situation for affected customers.

The cause of the outages is under investigation, with the AEMO citing the collapse of the Moorabool to Sydenham transmission line and the disconnection of multiple generators as contributing factors.

Citipower and Powercor spokesperson Emma Tyner highlighted the extensive damage caused by extreme weather conditions, including strong winds and lightning strikes, which have led to nearly 400 different faults across the network.

With restoration efforts underway, some customers may face prolonged outages lasting days. Tyner urged affected individuals to prepare for ongoing challenges as adverse weather conditions persist.

As authorities work tirelessly to restore power and manage the fallout from the outage, the incident serves as a stark reminder of the vulnerability of critical infrastructure in the face of extreme weather events.

The surge in power price driven by demand is temporary in Victoria.  Wholesale power prices are falling steeply in Australia, following two years of surging prices after the Ukraine war triggered an energy crisis. New data shows annualised spot prices for power in Australia’s main grid fell by about 50% in 2023. That brings the cost of wholesale power down towards the levels seen in 2021.