Electricity generator Stanwell Corporation Limited (Stanwell) has paid six infringement notices totalling $263,400.
The infringement notices were issued by the Australian Energy Regulator (AER) for allegedly applying an unapproved protection setting to three of its generating units at Stanwell Power Station and for failing to ensure those units met the required generator performance standard for voltage disturbances.
The alleged breaches were identified by the AER as part of its investigation into a power system incident that occurred in May 2021. The incident involved an explosion at Callide Power Station and the interruption of multiple generators (including Stanwell Power Station) and high voltage transmission lines in Queensland.
Electricity generators are required to operate their plant in line with Generator Performance Standards agreed with the relevant network service provider and the Australian Energy Market Operator (AEMO), and to fulfil their protection system obligations. These obligations are critical to maintaining system security and keeping the lights on when unexpected power system incidents occur.
The AER found that Stanwell had applied a protection setting since 2017 to the three generating units without prior written approval from AEMO. The setting applied by Stanwell meant that the units’ protection systems were not capable of maintaining continuous uninterrupted operation for voltage disturbances within the range required by its performance standards.
Stanwell has since removed the unapproved setting and agreed on a new setting with AEMO.
AER Board Member Mr Justin Oliver said the regulator takes breaches of this nature seriously due to their potential to adversely impact power system security.
“The security and stability of our power system relies on generators complying with agreed performance standards, meeting protection system obligations and providing accurate and complete information to AEMO,” Mr Oliver said.
“This allows AEMO to determine the appropriate secure operating limits and ensure the power system is resilient to unstable conditions.”
“As Australia transitions to new forms of electricity generation with different technical characteristics it is more important than ever that all generators comply with the rules,” Mr Oliver said.
The AER is continuing its investigations in relation to the May 2021 power system incident.
Note to editors
The payment of infringement notices does not constitute an admission of liability by Stanwell.
The AER can issue infringement notices when it has reasonable grounds to believe a person or business has contravened certain provisions of the National Electricity Rules.