One severe weather system, one disruption of a major asset, or one supply chain delay can place households, businesses, and entire regions under unexpected stress. In a place defined by distance and climate, reliability is not just a technical matter — it is central to safety, wellbeing, and opportunity. 

Across the Territory, our energy system is working hard, but parts of it are ageing. Channel Island Power Station (established in the mid-1980s) remains the backbone of the Darwin–Katherine system’s power supply, supported by Pine Creek, Weddell and Katherine Power Stations, many of which have been operating for decades. Further south, facilities in Alice Springs, Tennant Creek, Yulara and Kings Canyon continue to support their communities, with some generators first commissioned in the 1970s and 1980s. These assets have served Territorians well, yet the demands placed on them are increasing as our population and energy use evolve. 

At the same time, important upgrades are underway. The Darwin–Katherine Battery Energy Storage System (DKBESS), located at Channel Island, is nearing completion and now in its final testing and commissioning phase. Once fully operational, it will help stabilise the grid for around 150,000 customers, support the integration of more solar energy, cut emissions by roughly 58,000 tonnes a year, and deliver significant annual cost savings. Additional battery systems and even the Territory’s first synchronous condenser are already in planning and are expected to strengthen security across the network even further. 

Beyond the major centres, many regional and remote communities still rely heavily on diesel generation. These systems are expensive to run, vulnerable to fuel supply challenges, and easily disrupted by extreme weather. Ensuring reliability in these communities is not simply an engineering issue; it requires a tailored approach, long-term planning and respectful collaboration with local residents. 

Affordability is often part of the reliability conversation, and it is easy to oversimplify. Around 40 percent of the average household electricity bill relates to the wholesale cost of generating electricity, which in the Northern Territory is primarily from natural gas. Another 40 per cent of the electricity costs customers pay are associated with the network infrastructure required to deliver it. 

As a result of the relatively high proportion of costs attributed to network infrastructure, even when wholesale power prices fall, overall electricity costs can remain high if the network itself – poles, wires and substations – require major investment. 

Public debate often focuses on the wholesale component, but rarely the network infrastructure component. For a more complete picture, network infrastructure must be an equal part of the conversation. 

Large-scale developments, such as those progressing in the Beetaloo, can help underpin essential energy supply. On top of the additional gas supply, further value comes from the pipelines, powerlines and infrastructure corridors built alongside these assets. These assets enable economic development and support both dispatchable and renewable generation, creating an energy system that is cleaner, more flexible and resilient. 

However, reliability of energy supply is not a purely technical or economic consideration; critically it is also a social consideration. 

Reports such as Right to Power highlight how many Territorians, particularly in First Nations communities, still experience energy insecurity through pre-paid electricity systems. For households on pre-pay meters, a lapse in credit can mean an immediate loss of power, often during periods of extreme heat. This can have serious health, social and economic impacts. The challenge here is not just the technological solutions, but the protections and processes that sit around energy supply reliability and security. 

Community-led solutions are showing what is possible. The solar microgrids in Marlinja and soon in Borroloola demonstrate how local leadership, government and industry can work together to reduce diesel reliance, lower costs and improve reliability. These projects are early examples of what the future could look like when communities are empowered to shape their own energy systems. 

Oversight and regulation from bodies such as the Utilities Commission also remain important to ensure transparency, accountability and consumer protections. However, regulation alone cannot guarantee system reliability. It requires coordinated investment, thoughtful planning and a long-term commitment to modernising the system. 

As we move through another build up and watch storms form across northern waters, it is worth remembering that reliability begins long before any cyclone approaches. It begins with investment in infrastructure along the breadth of the energy supply chain. It begins with understanding the role of the energy supply sources, combined with wholesale energy and network costs. And it begins with ensuring that every Territorian, from Darwin to Docker River, has a fair and dependable energy supply. 

Reliable energy is the foundation that supports our communities, our economy and our future growth. Getting it right is not optional. It is essential and it is achievable when industry, government and communities work together with a shared commitment to reliability for all. TQ