Once-in-a-decade demand to put Australia's electricity market to the test

An expected once-in-a-decade surge in demand for electricity will put Australia's energy system to the test over summer.

The Australian Energy Market Operator (AEMO) has warned it could be stressed to near breaking point, with an El Nino increasing the likelihood of hot and dry conditions as well as elevating the bushfire risk in parts of the country.

The market operator has confirmed it is making offers to industrial power users to cut their use and reduce the likelihood of blackouts at a time when many Australians are expected to switch on their air conditioners.

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AEMO executive general manager of operations Michael Gatt said months of planning with industry had gone into preparing the power systems for a possible summer of extreme demand.

"Our extensive planning with industry, governments and network businesses aims to have enough generation and transmission available year-round to meet consumers' electricity needs," Gatt said.

"This year's summer forecast is for hot and dry El Niño conditions, increasing the risk of bushfires and extreme heat, which could see electricity demand reach a one-in-10-year high across the eastern states and in Western Australia.

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"The entire industry has been focusing and continues to focus on managing possible risks for the summer ahead, particularly during high demand periods."

Compared to last summer in the national energy market, an average 1500 megawatts (MW) of scheduled generation and an extra 2000 MW of generation capacity from new wind and solar projects will be available this summer.

In the wholesale electricity market, nearly 50 MW of extra scheduled generation is expected to be available.

"The increase in generation availability and additional reserves being procured will help navigate reliability pressures, should they eventuate," Gatt said.