Wind farm giants face legal action over SA blackout 'failures'
Australia's federal energy watchdog has launched legal against against four wind farm operators including AGL over the South Australian statewide blackout in 2016 which the cut power connections of 850,000 homes and businesses and sparked a national energy policy debate.
Proceedings have been filed in the Federal Court against AGL, Neoen, Pacifyc Hydro and Tilt Renewables, alleging the companies failed to comply with performance requirements to ride through major disruptions and disturbances, the Australian Energy Regulator (AER) said on Wednesday.
"The AER has brought these proceedings to send a strong signal to all energy businesses about the importance of compliance with performance standards to promote system security and reliability," AER chair Paula Conboy said.
Nearly three years ago – on September 28, 2016 – South Australia was plunged into darkness as powerful storms barrelled across the state.
Described by experts as a once in 50-year storm, the weather event included 80,000 lightning strikes, tornadoes and wind speeds reaching up to 260 kilometres an hour. The storm led to a series of failures causing the state, which has a high reliance on wind power, to become cut off from the rest of the national energy grid.
It also sparked a national political debate over Australia's energy mix including questions about whether or not renewable energy, such as wind, was reliable enough to provide baseload power.
The legal action announced on Wednesday, claiming the companies breached the National Energy Rules, is seeking declarations, penalties, compliance orders and costs.
AGL, in a statement to the stock exchange, described the AER's allegations as "highly technical in nature". The energy giant said the legal action related to the performance of its Hallett 1, Hallett 2, North Brown Hill and The Bluff wind farms during the weather event.
"AGL has previously stated that it considers that it has complied with its legal obligations in relation to the events of 28 September 2016 but will review the allegations made by the AER and consider its position," the company said.
The AER said providing timely and accurate information to the Australian Energy Market Operator (AEMO) was critical to ensuring power system security and the effective operation of the wholesale energy markets.
More to come.