New South Wales Treasurer and Energy Minister Matt Kean has confirmed the state's energy supply is now steady after a meeting with the market operator.
A generator came online today adding 689 megawatts to the system, while another one is expected to turn on tomorrow.
"This morning's update from the Australian Energy Market Operator gives me and should give everyone great confidence that we're out of those difficult conditions that we saw earlier in the weekend," Kean said.
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It comes after he was granted special powers to force coal companies to give fuel to electricity generators.
Kean said these powers will be used "if the need arises".
Residents no longer need to limit their energy usage.
The energy regulator issued a brief statement this afternoon to reassure Australians there should be no blackouts this weekend.
"AEMO can confirm sufficient electricity supply can be made available to meet forecast demand over the weekend across all regions in the National Electricity Market," the regulator said.
"Since announcing the suspension of the electricity spot market, we have seen improvements in generation availability, as reflected in our forecasts.
"Challenges remain in the energy sector and AEMO will continue to monitor supply levels and risks across all regions."