NSW Electricity Demand drops by 4%

Here's something those behind the relentless electricity price increases weren't expecting: annual electricity demand dropping across the entire electricity network.

In NSW, the demand drop between 2010-11 and 2011-12 was a massive 5.6% below predictions.

We're not talking about demand growth being lower. Actual electricity demand was a full 4.1% lower than the previous year.

In fact, this is the third year that total annual electricity usage has dropped in NSW (which I should add, includes the ACT).

What caused the drop in electricity demand?

The Australian Energy Market Operator puts the demand reduction down to three main causes:

  1. Closure of the Hunter Valley's Kuri Kurri aluminium smelter
  2. Installation of rooftop solar photovoltaic panels
  3. Adoption of energy efficiency measures

Further reductions expected

This decrease is expected to be backed up with a further 2% reduction this coming year.

Given that's 9.7% below the estimate made just one year ago, reality is anyone's guess.

This has been a long time coming and has evidently caught the planners off guard. Energy reduction is set to become the norm replacing relentless and nonsensical demand growth as 'business as usual.' 

See also: Electricity Consumption Lower in Tasmania, Victoria and South Australia

- Ryan McCarthy
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