Temperatures in Sydney are expected to soar above 30 degrees Celsius from November 25 to November 28, 2024, with Western Sydney potentially reaching near 40°C.

The Australian Energy Market Operator (AEMO) has issued multiple lack of reserve alerts for New South Wales (NSW), including a level-3 alert for November 27.

AEMO attributes the tight electricity supply forecasts to high temperatures, increased demand, and generation outages.

Currently, almost 6 gigawatts of coal-fired power stations are offline in southeastern Australia due to maintenance, exacerbating the supply issues.

At least one generation unit is offline at three out of four coal-fired power plants in NSW, including Bayswater, Vales Point, and Eraring.

Electricity demand is expected to surge as residents turn on air conditioning to cope with the heat, continuing into the night.

Warnings have been issued for an elevated risk of blackouts in NSW starting November 26 due to the extreme heat.

On November 25, 2024, NSW may face blackouts with a potential shortfall of up to 227 megawatts between 4:30 PM and 8:30 PM AEDT.

If voluntary reductions by large energy users do not suffice, AEMO may intervene to mandate shutdowns to maintain grid stability.

Both NSW and Queensland are likely to experience volatile pricing in the wholesale power market due to the anticipated demand and supply challenges.

Clare Savage, chair of the Australian Energy Regulator, noted that increasing outages of coal plants are impacting electricity supply and driving up prices.

AEMO is actively working to mitigate demand by requesting large energy users to temporarily shut down operations to prevent potential blackouts.