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Continuing to emphasise the importance of renewables for the future, Westerman says that over the last year, thousands of megawatts worth of solar and wind projects have been connected to the grid, a “priority” for authorities:

Australia’s got an enormous job to do in connecting new generation sources, particularly solar and wind. As well as battery storage.

Over the last 12 months, we will have connected 4,000 megawatts of solar and wind projects and by the end of this calendar year, hopefully 5,000 megawatts.

Yes, we might have had a delay in the last couple of days while we have focused on keeping the grid secure for homes and businesses. Our priority will be to continue to connect the new generation sources at pace.

Next, Bowen is asked what the “overall plan” looks like, with some states discussing various moves, and Bowen said the government wants a capacity mechanism to help “provide that safety net” under the energy grids:

A capacity mechanism is very important going forward. Yesterday, or the day before, the ESB put out its latest thinking and cop assaultation paper which will help inform ministers make decisions. Ministers have instructed that this be proceeded with as a matter of pace. We will do that, ESB’s work will inform the next round of ministers’ consideration.

I want to see this done right. As I have made clear, there will be a degree of flexibility as to how states implement the capacity mechanism with particular regard to their own state’s circumstances. This is a transformation which we need to get moving on.

We need to make faster progress on the transformation and we need the capacity mechanism to help us do that to provide that safety net underneath as we engage in this significant transformation to a more renewable economy, a more renewable energy system with more storage.

I have made clear, and ministers have made clear, we want the capacity mechanism to focus on new technology, storage being prime amongst it. That is what we will deliver. There will be further discussions between me and the state ministers but I am confident we will deliver a good national framework because we have to be getting on with the job because this transformation which is so important to the new government’s agenda is actually so important for the country.

Westerman says the measures taken by Aemo was “not where the market operator wants to be in”:

We will be working very closely with the regulator and the energy markets commission on a series of actions that do take steps to prevent this from happening again.

It is not a place where the market operator wants to be in suspending the market and we are looking at – we will undertake a detailed investigation, together with the regulator and others to understand comprehensively the lessons learned and put in place actions so it doesn’t happen again.

Westerman has said the longer term plan is to move away from “international price shocks”:

This situation is caused by a multitude of factors. Yes, ageing plants which breaks down and has more maintenance issues is an issue.

The war in Ukraine and the impact of global commodity prices is an issue, yes. It points to the long term answer which is a transition to firmed renewables and transmission.

That is the long term answer to delink us from international price shocks, as well as ageing infrastructure.

Westerman has said Aemo’s engagement with generators has been cordial, and highlighted by the fact that generation under Aemo direction has reduced:

At an operational level, we have exceptional working relationships with each generator and to quantify that, we have been able to reduce the amount of generation that is under direction from AEMO from about 5,000 megawatts down to less than a thousand megawatts.

That has been reprofiling of generation and collaborative working and a trajectory back towards making the market more functional and restoring normal order to it.

Bowen is asked if the “dysfunctional” behaviour of generators this past week have damaged their social standing:

I think it was referred to as a dysfunctional market. In relation to the generators, I have made clear AEMO has our full support in the actions they have taken.

The Australian Energy Regulator, through Ms Savage, remains vigilant to their behaviour. I am not here to comment on the particular activities of any particular generator, other than to reinforce the Federal Government’s expectation that all generators, and I am sure I am joined by my State and Territory colleagues that generators bid into the market as they are required to do as a matter of law.

Before taking questions, Chris Bowen has just added a comment, saying the government backs Aemo in its move to return to normal market conditions:

What the chief executive has outlined today is, I think, a prudent and carefully managed approach to return to more normal market conditions. Risks remain in the system and I know that Aemo remains vigilant about what needs to be cared for in the coming days but the process laid out by Aemo, which Mr Westerman says has been briefed to state and territory ministers in the lead-up to today’s announcement is a prudent, carefully managed and staged return with the same prudence that Aemo has shown over recent days.

Also, I have spoken this morning to the Australian energy regulator Clare Savage who will continue her close activity and monitoring of behaviour of generators and ensure that consumers’ interests are put first and I say the Australian energy regulator has the full support of the federal government as we go through this period for any action that she deems necessary to take.

Aemo to monitor market closely for 24 hours

Daniel Westerman has continued, listing three things that he expects to happen once the suspension is lifted:

After taking that first step, I would expect to see three things. First, the system that we use to schedule generation into the grid at the lowest cost to consumers, the dispatch engine will be working without failure.

Second, that Aemo will be able to reduce the number of directions that we are giving to generators and, third, we would expect to see a reduction in the forecast shortfalls of energy or low reserves as generators respond to those market signals.

We will monitor the market closely for at least 24 hours and if we see normal market behaviour again, then we will formally lift the suspension.

We know that a well-functioning national electricity market is key to ensuring the lowest cost energy to Australian homes and businesses. This step-by-step approach minimises the risk of seeing the dysfunctional behaviour that led to the market suspension last week.

Head of Aemo Daniel Westerman has stepped up and announced that the emergency suspension of the electricity market will lift in a staged response:

We know many generators are working hard and closely with governments to improve the confidence of their fuel supply, to ensure that they are able to operate at their desired level of output.

I have said that we will not keep this market suspended for a minute longer than is needed and today, I can confirm that we are activating a staged approach to lift the suspension of the national electricity market.

The first step will take place at the end of trading day today and that is 4am tomorrow morning. When we will allow the market to set the price again. The second step will happen 24 hours after that, when we will be able to formally lift the market suspension.

Energy minister Chris Bowen has just stepped up for a press conference in Sydney, beginning by saying Australian’s should have confidence in the market regulator:

As I said at the outset of this challenge, Australians could take comfort in some key points. Firstly, the federal and state governments across the national energy market were working closely together to ensure that the lights stayed on.

Secondly, we have world-class energy market operators and energy regulators, ensuring that the consumers’ interests were put first. As a result of all those things, we have avoided blackouts and load shedding over recent weeks, despite very considerable challenges.

The actions taken by Aemo last week were very significant and very necessary and, as I said at the time, had my full support. I also said they would stay in place for not a day longer or a day shorter than the chief executive of Aemo judged as necessary.

The Australian people can have confidence in their regulators and market operator who works closely with state and territory and the federal government to ensure that consumers’ best interests are protected and that our energy system remains reliable, despite the very considerable challenges that have been faced in recent weeks.

Energy news incoming …

Expecting energy minister Chris Bowen to make a monumental announcement shortly … well, he is doing a standup in front of some statue in a park in Sydney’s CBD.

(It’s been a long week … )

We are expecting him to announce, alongside the boss of the Australian Energy Market Operator Daniel Westerman, the timing of the resumption of the national electricity market’s wholesale trading.

We learned yesterday that the suspension of the spot market for power was nearing an end, with Aemo saying it had held a briefing with industry on Tuesday “outlining the assessment criteria and a staged process to resume normal spot market operation in the Nem”.

The market serves most of Australia save the NT and WA, and its suspension a week ago amid forecasts of electricity shortfalls was the first in its 24-year history.

For one thing, the demand/supply balance is improving, thanks in part to more units at the coal-fired power stations come back online. Temperatures have improved a bit too and so demand has been reduced (but another cold front is always just around the corner if you’re in southern Australia).

Anyway, we should learn soon just how long it will be before Aemo can drop its “command and control” approach to ordering generators to switch on (and be compensated for it).

There may be some news about when the $300 a megawatt-hour price caps may be lifted across the five states in the Nem.

Merlino hails expanded mental health program for children

Victorian education minister James Merlino is singing the praises of a children’s mental health program that was initially rolled out in 100 schools and will be scaled up across the state.

Merlino announced the $200m program yesterday, saying the initial rollout led to improvements in the handling of health, confidence and bullying issues.

Appearing on RN breakfast this morning, Merlino said the evidence was “quite exciting”:

It’s the single biggest investment in student mental health. We started with 10 schools. We ramped it up to 100 schools and now we’re going statewide and the evidence is quite exciting, with 95% of schools that participated said they saw a distinct increase in their capacity to deal with individual student mental health needs.

In terms of students, we saw a greater sense of confidence, better management of bullying, and a survey of parents showed that they felt that their child’s mental health and wellbeing at home was better than non-participating school parents.

John Barilaro ‘will do a great job’ as New York trade commissioner, Perrottet says

Tamsin Rose

New South Wales premier Dominic Perrottett has sought advice over the appointment of former deputy premier John Barilaro to a highly paid New York public service posting after Guardian Australia revealed that a senior public servant with a stellar résumé was offered it first, only for that offer to be rescinded.

The Guardian understands Jenny West was informed in August she had got the job by the then premier Gladys Berejiklian before Barilaro was tapped last week.

Speaking at a school in Sydney on Wednesday, Perrottet said:

I’m advised that there was two processes, the first process did not reach an outcome where the public service determined that there was an appropriate candidate … and so a second process was commenced. I’ve also spoken to the minister this morning to get further information in relation to background and timeline in relation to those matters but the advice I’ve received.

When asked if Barilaro was interviewed in the second process and determined to be the best candidate, Perrottet said:

Public service employment decisions go through the public service. The public service, during independent processes … appointed the former deputy premier.

I do believe, like all the trade commissioners, that he will do a great job.

Another rise in Covid-related deaths this week, this time in NSW, which is reporting 26 deaths overnight as well as 9,472 new cases:

Queensland and NSW budgets will ‘make things worse’, Canavan says

Queensland Nationals senator Matt Canavan says the NSW and Queensland governments are experiencing a “Covid hangover” and that their promises will only “delay the inevitable”.

Canavan was on the Today show and dismissed both budgets as spending too much money, saying they will only make inflation worse:

It seems to me governments think the way of the hangover is to keep drinking. That is going to delay the inevitable and make things worse.

We have to get spending in control, and I’m not sure the states are doing that right now.

The NSW premier is making the rounds today and I’m sure he intended it to be a morning where he gets to spruik the budget, but a planned teachers strike (and John Barilaro) has put a stop to that.

In his interview on RN Breakfast earlier this morning, Dominic Perrottet pleaded with teachers to “act reasonably” after they decided to strike next Friday in protest at a proposed 3% pay increase (which does not keep up with inflation):

The reality is that most people across our state will not be having pay increases. The wage bills for public service workers are paid for by the taxpayers of NSW who are also doing it tough.

We’ve led the way on wages. I think it’s their responsibility to act reasonably and consider everyone across the state. A 3% wage increase is the highest increase across any state or territory in the country. We’ve led the way on wages and have come up with something that’s fair and reasonable.

Everybody across our state is doing it tough in a higher inflationary environment.

Ley says Coalition had ‘right rate’ of energy transition

Deputy Liberal leader Sussan Ley has denied the previous government fumbled the energy transition. She told Sky News that Labor does not understand “the transition takes time”:

We didn’t plan to accelerate it at a rate that pushed up power prices.

The heart of this problem is [Labor] not understanding that the transition takes time.

It comes back to Labor’s instincts which is always to put government into the centre of everything, rather than industry.

It’s ideology, it’s not practical action.