New South Wales hit by heatwave, power price spikes and fire bans

New South Wales is experiencing an unseasonably hot period in mid-October, characterized by high temperatures and significant energy market volatility. In Sydney, temperatures reached 35 degrees Celsius, triggering a spike in electricity prices that hit AUD 23,107 per MWh during the afternoon.

The price surge coincided with a drop in solar power due to cloud cover and the unavailability of several coal-fired units, including Mount Piper, Eraring, and Bayswater. While gas, hydro, and batteries provided some support, the combination of high demand and reduced coal availability led to extreme price fluctuations.

Simultaneously, the Bureau of Meteorology reported temperatures well above average, with western Sydney expected to reach 37 degrees Celsius. The heat, combined with dry conditions and northwesterly winds, has led to extreme fire danger ratings. Total Fire Bans are currently in effect for Greater Sydney and the Hunter Region. Officials have warned that dry lightning from afternoon thunderstorms poses a significant risk of starting fires across the state.