Pacific Hydro and Hornsdale will pay over $1.6 million in penalties for breaching energy rules.

Pacific Hydro has been ordered to pay $1.1 million in penalties by the Federal Court for breaching the National Electricity Rules by failing to obtain written approval for critical system settings in their wind farms.

The ruling came on the same day that Hornsdale was ordered to pay $550,000 in penalties by the Federal Court for breaching the same rules, in proceedings brought by the Australian Energy Regulator (AER).

AER Chair Clare Savage said that breaches of the rules like this have the potential to affect system security and are taken seriously.

“As we become increasingly reliant on new forms of generation with different technical characteristics, it is more important than ever that all generators comply with the rules so households and businesses can keep the lights on,” Ms Savage said.

“It is paramount that generators obtain written approval for system settings on their generating units from the Australian Energy Market Operator (AEMO) to ensure power system security and the effective operation of the wholesale energy market.”

Both proceedings were brought after an investigation by the AER into the circumstances of the Black System Event, which resulted in loss of power to 850,000 customer connections across South Australia on 28 September 2016.

Pacific Hydro admitted that, from August 2013 to October 2016, it applied repeat low voltage ride through (LVRT) system settings to the generating units of the Clements Gap wind farm without prior written approval from AEMO and ElectraNet.

LVRT system settings, amongst other things, are required to enable generators to ride-through voltage disturbances to ensure continuity of electricity supply.

Hornsdale admitted that, from June 2016 to October 2016, it applied LVRT system settings to the generating units of the Hornsdale wind farm without prior written approval from AEMO and ElectraNet.

In his judgment in each case Justice White stated that the generators’ “use of non-approved settings in the present case compromised AEMO’s ability to discharge its responsibility because it meant that it was making important decisions concerning the secure operating limits of the power system on the basis of incomplete information.”

The Court also ordered Pacific Hydro and Hornsdale to pay a contribution to the AER’s costs and to implement programs to ensure compliance with the National Electricity Rules.

Pacific Hydro and Hornsdale have also provided the AER with enforceable undertakings acknowledging the AER’s concerns that their wind farms did not ride through low voltage network disturbances in accordance with their Generator Performance Standards (GPS).

The undertakings provide for Pacific Hydro and Hornsdale to update their GPS for the wind farms and to have the updates reviewed by an independent expert and then approved by ElectraNet and AEMO.