The Bureau of Meteorology this week declared a 70% chance of an El Niño developing this year. It’s bad timing for the electricity sector, and means Australians may face supply disruptions and more volatile energy prices.
El Niño events are associated with increased temperatures and heatwaves. These conditions drive demand for electricity, especially in summer.
These same conditions can also mean some generators don’t produce at full capacity. And unfortunately, the likely El Niño comes as the electricity sector grapples with other significant headwinds.
