November 2018

23 Nov A lesson from RCR Tomlinson: corporate PPA’s and the sharing of risk

RCR Tomlinson entering voluntary administration this week has been a major eye-opener in the renewable energy world. The engineering firm had shown signs of stress earlier in the year, particularly when it was forced to record a $57 million write-down on the value of it’s Daydream and Hayman solar farms in Queensland. Following this, the company successfully went to market and raised an additional $100 million in capital. Now after incurring liquidated damages as a result of running late on solar projects, directors had no choice but to put the company into administration. In the renewable energy space, these events particularly emphasise the potential risk of entering into a PPA with...

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14 Nov STATE OF THE ELECTRICITY MARKET – WINTER MARKET OVERVIEW

The electricity spot prices were generally higher for the winter period (June to August) than the preceding three months. The largest contributing factors were higher gas prices and increased demand for most of the regions. This excludes Tasmania where average prices fell from $80.26/MWh in autumn to $47.55/MWh in winter. Demand was still higher in the Tasmanian region, however additional rain meant that many of the hydro plants were running, as opposed to spilling water without generating. This put downwards pressure on the local prices. The lower Tasmanian prices didn’t result in lower prices for the rest of the National Electricity Market (NEM). Across all regions, the prices during the 2018...

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14 Nov National Energy Guarantee: it’s over

In late 2017, the Energy Security Board (ESB) developed a scheme to provide investment certainty in the electricity market, which would address Australia’s commitments under the Paris Agreement. The Coalition had ruled out a carbon tax, other cap-and-trade schemes and virtually any other scheme which had been attempted in the past. This left very few options for the ESB to appropriately address investment certainty in the electricity market. The ESB eventually developed an innovative scheme called the National Energy Guarantee (NEG). The basis of the NEG was essentially a cap-and-trade scheme for environmental certificates and, as a sweetener, it also had a reliability obligation. Essentially, the scheme was linked to contracts...

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14 Nov Gas Market Update

Domestic gas prices have increased again as Queensland continues to export most domestic gas overseas in the form of Liquefied Natural Gas (LNG). Outages in early 2018 had limited output from the LNG facilities, however all trains are now available. The increase in total gas extracted on the East Coast of Australia is the largest contributor to the increase in gas prices. Before LNG demand, domestic gas could be extracted from cheap resources. However, as more gas is extracted from Roma, Queensland, the price of extraction has increased, which is then passed onto consumers. With the ability to sell gas overseas, producers are also looking to obtain a similar price domestically...

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14 Nov The future is bright for Edge

After celebrating ten years in business last year, 2018 has been a year of reflection. As founder and Managing Director, I especially have been reflecting heavily on why the business started, how it has become what it is today and, perhaps most importantly, where the business is headed. One thing I’m very proud of is that the ethos of Edge has been unwavering since inception. Edge was established to deliver value.  At the core of every decision we make and everything we do is ensuring large energy users are equipped to achieve superior energy outcomes.  Put simply, we do everything possible to provide the tools and means to buy better. They say...

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14 Nov STAFF PROFILE – Bridget Quilty

What is the best piece of advice you have ever received? Failure is the best teacher there is and it provides an opportunity to learn and better yourself. You cannot grow without failure. Name a place you have never been to and would like to visit. Why? I would love to do the Overland Track in Tasmania. It has been on my bucket list for some time now. I was born in Tasmania, so it holds a special place in my heart. The wilderness is also spectacular in Tasmania. My ideal holiday would be spent camping and hiking through the wilderness. There is nothing more refreshing than getting out in nature, challenging yourself...

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14 Nov Foodbank Queensland – fighting hunger through the Christmas season

As 2018 continues to fly by, Christmas is now right around the corner. At Edge, we recognise that the reality of Christmas is very different for many families in our community. Christmas isn’t always a time of celebration, family, friends and gift giving. In lieu of providing Christmas cards to our customers each year, Edge donates to a local charity to help support members of the community who struggle through the Christmas season. This year, Edge will be donating to Foodbank Queensland. Foodbank is the largest hunger relief organisation in Australia, providing enough food for over 67 million meals last year alone. The aim of Foodbank is to combat food insecurity, which...

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