The Australian Energy Market Operator (AEMO) forecasts reliability gaps in NSW for 2025-26, according to its 2022 Electricity Statement of Opportunities, four years earlier than originally projected.  
 
Last year, the same report forecast the gaps to occur in 2029-30.
 
A reliability gap means the energy system struggles to meet the electricity demands of families and businesses, both in terms of quantity and quality.
 
This report shows there are serious shortcomings in the NSW Government’s plan to meet the shortfall of coal and gas plant closures.
 
For months, Energy Minister Matt Kean knew Eraring Power Station would close early and power prices would rise but continued to promise the people of NSW the government’s plan to build new generation was working and would deliver lower prices.
 
It is clear the NSW Government’s privatisation of power generation has left the state vulnerable to power shocks and shortfalls with little leverage to fix this looming threat.
 
The AEMO report confirms what NSW Labor put to the government in budget estimates – that projects to replace Eraring are nowhere near sufficiently advanced. Indeed, the proposed Waratah Super Battery has not even announced a site.
 
Furthermore, planned Renewable Energy Zones (REZ) are nowhere near ready. Budget estimates revealed that the Central-West REZ, meant to deliver 3GW, does not have a single shovel-ready project yet. The South-West REZ, the Hunter-Central Coast REZ and Illawarra REZ are not even declared.
 
Jihad Dib, NSW Shadow Minister for Energy & Climate Change, said:
 
“The AEMO report holds Matt Kean’s feet to the fire. He and the government have not been upfront with NSW about the looming potential energy shortfalls and the price shocks we will have to endure.
 
“NSW Labor has always said we support a renewable energy future and we understand not everything is in the government’s control. But NSW rightly expects any plan to be workable and updated to reflect changing circumstances.
 
“Last week’s Budget Estimates confirmed what I suspected all along; we are at serious risk of an energy shortfall because this government is big on talk and short on delivery.
 
“Families and businesses across NSW are set to pay the price of this government’s relentless privatisation agenda. Dominic Perrottet and Matt Kean have never seen a stable state owned asset that they don’t want to sell off.
 
“Everyone is feeling the pinch of high energy prices – but they will only get worse, unless we ensure there’s enough energy coming online in the near future.” 

JIHAD DIB MP
SHADOW MINISTER FOR ENERGY AND CLIMATE CHANGE