Edge News

Our team is dedicated to being across the energy industry. We analyse any changes within the market and evaluate the impact to our clients. Here you will find a range of articles ranging from major industry events through to our detailed views on energy market movements.

06 Jun Retailer Reliability Obligation Final Rules Package

Posted at 17:18h in Electricity, Energy Markets, News by Nick Clark

Yesterday the Energy Security Board (ESB) provided an overview of the final package of proposed amendments to the National Electricity Rules (NER) (final Rules) to implement the Retailer Reliability Obligation (RRO or the Obligation) and takes into account stakeholder feedback. It should be noted that South Australia is undertaking a separate process in relation to how the national framework may have to be amended or altered to take into account the framework that will apply in South Australia (including that the South Australian Minister may trigger the RRO sooner than under the national framework). The RRO originated from the National Energy Guarantee. As outlined in the ESB's Final Rules Package, the RRO...

20 May LNP Inertia Continues

Posted at 10:03h in Electricity, Energy Markets, News, Renewables, Solar, Uncategorized by Nick Clark

In a surprise outcome the LNP maintained leadership over the weekend noting that it remains unknown whether or not the LNP will form a majority government. Energy and climate were at the heart of this election with Labor putting forward material initiatives that would increase investment in renewable energy generation (increased funding to the CEFC) and reduce emissions through the extension of the safeguard mechanism, amongst a number of other initiatives. The LNP are less ambitious and maintain the emissions reduction target of 26-28% below 2005 levels by 2030. The LNP will extend the Climate Solutions Fund by providing additional funding to the Emissions Reduction Fund which is the reverse...

15 Apr Queensland spot prices – March vs April to date

Posted at 15:59h in Electricity, News, Renewables, Solar by Nick Clark

In Queensland, we have observed lower daytime spot prices since the beginning of April, relative to March averages. Taking a closer look at half hourly average spot prices seen so far in April, we can see that between 8am and 4pm spot prices have been softer than the same periods in March. Following this, spot prices are higher in the evening peak periods. Whilst it is a very small data set, this is the relationship that many in the market expect to evolve. Softer spot prices in the day will motivate generators to price more aggressively (price higher) in the evening peak to increase earnings which have been lost during the day. Should...

09 Apr STATE OF THE ELECTRICITY MARKET – SUMMER MARKET OVERVIEW

Posted at 08:20h in Edge Insights, Electricity, Energy Markets, News by Alex Driscoll

The electricity spot prices were higher for the Summer period (January - March) compared to the preceding three months. Although demand remained static, prices increased as a result of coal and gas generation setting prices at elevated levels. Average prices increased in all regions from the previous summer, with Queensland increasing the least at 23% and Victoria increasing the most at 62%. Across all regions, prices during the 2019 summer were higher than the 2018 summer and were very high in a historical context for Victoria, South Australia and Tasmania. Looking back across the last 10 summers, 2019 summer prices are at their highest levels in most states. Figure 1: Historical prices...

09 Apr Accessing the STTM: Alternative gas supply

Posted at 08:18h in Edge Insights, Gas, News by Stacey Vacher

For a growing number of large energy consumers, consideration is turning to whether entering standard vanilla retail gas agreements deliver the most effective outcome. For consumers who are located within the bounds of the Sydney, Brisbane or Adelaide Short Term Trading Market (STTM) markets, many may not be aware that there is an alternative way to purchase gas. Below, we consider how the STTM works and what the benefits are of exploring this option. What is the STTM The STTM is essentially a market for the trading of natural gas at a wholesale level at defined hubs between pipelines and distribution systems. The STTM is a day-ahead gas market operated by the...

09 Apr Gas Market Update

Posted at 08:17h in Edge Insights, Gas, News by Nick Clark

Capacity Trading As of 1 March, the new Capacity Trading Platform (CTP) and Day Ahead Auction (DAA) came online. This market arose after the Council of Australian Governments (COAG) Energy Council agreed to implement the legal and regulatory framework required to give effect to the capacity trading reform package, as recommended by the Australian Energy Market Commission (AEMC) as part of its Easter Australian Wholesale Gas Market and Pipelines Framework Review. The reforms apply to the operators of transmission pipelines and compression facilities operating under the contract carriage model (collectively referred to as “transportation services”). The objective of the reforms is to encourage and facilitate trading of unutilised capacity on non-exempt transportation...

12 Mar Clean Energy Regulator confirms 2019 RRP and STP

Posted at 16:38h in Electricity, Energy Markets, News, Renewables, Solar, Uncategorized by Edge Admin

On 12 March 2019, the Clean Energy Regulator (CER) has confirmed the 2019 renewable power percentage (RPP) and small-scale technology percentage (STP) has been set by legislative amendment. The 2019 RRP has been set at 18.6% and the 2019 STP has been set at 21.73%. As explained by the CER, the RRP and STP set the annual statutory demand for large-scale generation certificates and small-scale technology certificates in the Renewable Energy Target. If you have any questions regarding the 2019 RRP or STP or any other matter relating to energy, please contact Edge Energy Services on 07 3905 9220 or 1800 334 336. ...

08 Mar AEMO releases draft Marginal Loss Factors

Posted at 16:38h in Electricity, Energy Markets, News, Renewables, Solar by Nick Clark

The Australian Energy Market Operator (AEMO) released its draft marginal loss factors (MLFs) today. As generally expected, solar and wind farms that are a long distance from the regional reference point have been hurt. The most notable example of this is the Broken Hill solar farm, which has a draft MLF for FY20 of 0.7254. This is 0.2535 below the current MLF. If the draft MLF is confirmed in the final report (due 1 April 2019), this will reduce the volume of electricity sold by the solar farm by 25%. A number of other solar and wind farms had material reductions in MLF and are facing a challenging situation. Most...

01 Mar CleanCo Moving Ahead – Part 2

Posted at 17:05h in Electricity, Energy Markets, Gas, News, Renewables, Solar, Water by Alex Driscoll

With expectations that CleanCo will be trading in the NEM by mid this year, things are getting into full swing. Last week CleanCo appointed its first two key executives – Miles George and Geoff Dutaillis. Who are these new executives? Miles George has been appointed the Interim Chief Executive Officer (CEO) at CleanCo. His role at CleanCo is to secure cleaner, more affordable, sustainable energy and secure supply of electricity for Queensland (QLD). He was previously the CEO and Managing Director of Infigen Energy. After leaving Infigen Energy in 2016, Miles continued as a strategic adviser until December 2017. During and after his time at Infigen, Miles has been the Chairman of...

14 Feb Queensland Reaches Record Demand

Posted at 15:49h in Electricity, Energy Markets, News by Nick Clark

Queensland (QLD) operational demand (see definition in image below) reached a new all-time record of 10,052 MW at 4.55pm yesterday (13th February 2019) largely as a result of temperature driven demand. Despite record demand, spot prices remained steady with QLD generators ramping up generation and conservative bidding from key generators. Image sourced from AEMO In terms of what type of generation was keeping the lights on, black coal and gas were the two largest contributing fuel sources (as shown in the image below). At the time of peak demand, 6,458 MW of generation was coming from coal and 2,253 MW from gas (natural gas and coal seam gas). Should demand have crept...