Australia’s energy crisis is likely a preview of things to come amid worsening global shortages and market uncertainty. This will compel Canberra to make significant policy changes aimed at securing the country’s power supply, including boosting investment in renewables. On June 15, the Australian Energy Market Operator (AEMO) took the unprecedented step of suspending the wholesale spot market in all five eastern Australian states making up the National Electricity Market. The operator’s CEO said it was forced to intervene to direct 5 gigawatts of power generation to be available to supply power if needed in order to ensure “a reliable supply of electricity” for eastern Australia. AEMO’s drastic suspension, which it will review daily, comes after AEMO issued load shedding warnings and introduced price caps for Queensland, New South Wales, South Australia and Victoria....
