Energy issues in South Australia will see two diesel generators resurrected. 

The generators have been authorised for reactivation during peak electricity demand periods this summer, following a decision by the Australian Energy Market Commission (AEMC). 

The move is a response to reliability concerns due to delays in new infrastructure and worsening power shortfall risks.  

Energy Minister Tom Koutsantonis last year sought changes to allow the Australian Energy Market Operator (AEMO) to utilise the Snuggery and Port Lincoln diesel generators, owned by Engie, as emergency reserves. 

These facilities, mothballed in mid-2024, are set for permanent closure by 2028. 

The rule adjustment permits their temporary use until 31 March 2025 to mitigate the risk of load shedding during extreme weather events.  

The AEMC notes that “without sufficient backup electricity reserves, South Australia could face potential load shedding”. 

Premier Peter Malinauskas says the measure is a contingency, describing it as “an insurance policy within the system”.  

This exemption comes amid delays in the Project EnergyConnect interconnector and insufficient responses to AEMO's tender for reserves. If contracted, the generators will provide 138 MW of emergency capacity during critical periods.  

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