Edge Insights

20 Jan Water – a top priority for Tarong Power Station

Current weather conditions are placing an increased reliance on the diminishing water catchments across Australia. These water catchments store water for use by various parts of the local community including drinking water for residents, irrigation and Electricity generation. Stanwell recently announced water sustainability is a top priority for its Tarong Power stations located within the South Burnett region. Water is an essential necessity for thermal power stations to make electricity. The water is used for steam production and cooling. Tarong power station consisting of 4 X 350MW thermal units and a 443MW supercritical unit. These units obtain their water from two sources, the primary source is Lake Boondooma and secondary from a pipeline using water from Lake Wivenhoe or...

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13 Jan Retailer Reliability Obligation triggered in South Australia

The SA Government (South Australian Minister for Energy and Mining) has the power (under South Australian Legislation) to trigger a Retailer Reliability Obligation (RRO) upon informant from AEMO of a one-in-two year peak demand forecast shortfall event as published in the South Australian Gazette 17 December 2019, with the AER confirming and publishing the notice 9 January 2020. For the avoidance of doubt this means that unlike all other regions which require the Electricity Statement of Opportunity (ESOO) to predict an unserved energy event, SA can act independently without approval as such from the AER. The RRO was trigged for South Australia on the 9 January 2020 for the following periods: First...

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13 Jan Semi-scheduled and Intermittent Non-scheduled Generators urged to advise of De-ratings

A new market notice within the National Electricity Market (NEM) posted by the Australian Energy Market Operator (AEMO), one we have not see before was issued to all market participants on the 23/12/19. The market notice requested and served as a reminder for all semi-scheduled and intermittent non-scheduled generators to ensure they update their market availability bids, update their SCADA Local Limit or, if unavailable, advise AEMO control room to implement a quick constraint to the reduced available capacity level; and update intermittent generation availability in the EMMS Portal to reflect reduced plant availability as is required under the National Electricity Rules (NER), per NER 3.7B(b).limits. This was an interesting...

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23 Dec Gas power stations for Victoria and Queensland

The federal government recently announced an agreement to underwrite new gas turbines in Victoria and Queensland to provide relief from expected high peak prices. The operation of these assets, below the usual short run marginal cost of current open cycle gas turbines (QLD - $106 / MWh – AEMO 2019) will potentially limit the likelihood of high prices or price volatility over the morning and evening peaks resulting in reduced average spot outcomes. Under the new generation underwriting plan, which was proposed by the ACCC, the government will assure an amount of the electricity generated will be purchased for a set period into the future. The Victorian generator will be located at Dandenong,...

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13 Nov Could Hydrogen be the next ‘Green’ initiative?

Much of the gas industry is looking towards hydrogen as the solution to de-carbonising heating demand in Australia and across the world. This was given further support at the end of September when the COAG panel shared their ambitions for hydrogen.  The hydrogen gas solution acts like traditional gas in many ways, however there are potential flaws to trying to introduce this into existing infrastructure at any high blend percentages. The leakage rate is higher, embrittlement is a big problem on traditional pipes and to replace pipelines to more suitable plastic pipelines would be a huge undertaking both logistically and financially.  So, are there any other alternatives which could be considered but...

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13 Nov STATE OF THE ELECTRICITY MARKET – WINTER MARKET OVERVIEW

Electricity spot prices in Q319 (July to September) were relatively in line with Q3 2017 and 2018, however much higher than prices seen from 2014 to 2016 inclusive. Although, Q319 prices were softer than any other quarter for the year (2019) in majority of the NEM regions. The past three months have seen multiple negative price events in SA and QLD due to mild demand, constrained interconnectors and strong renewable generation volumes in solar (rooftop PV and large scale) and wind. SA’s Q319 price is on a downward trajectory from the massive jump-up it experienced in 2016, taking with it NSW and QLD which both had lower Q319’s in comparison to...

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13 Nov Are the physics of MLF elementary ?

At the end of September AEMO announced that it was pushing back its draft Marginal Loss Factor (MLF) determination around rule changes put forward by Adani Renewables to November.  Now don’t turn off, Marginal Loss Factors are not the new Dan Brown or Stephen King novel, but they are a hot topic of the NEM at the moment and ultimately will affect the cost of the electricity we all buy.  So what are they and why are they important? What is an Marginal Loss Factor? Think of a block of flats and you need to fill a bath on the 1st and 10th floors. However, to do that you need to climb up...

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13 Nov Predicted Shortfall of LGCs for 2019

LGC’s remain relatively elevated at ~$50/certificate. Volumes are being traded whilst liquidity is still being indicated as reasoning for increased prices for CAL19 certificates market. The Clean Energy Regulator came out on Thursday 31 October and announced based on forecasts and certificates created thus far this year, there is likely to be a shortfall in CAL19 certificate creation by 2 million certificates which has resulted in an uplift in prices. Despite this, we are seeing continued strong wind and solar generation around the NEM which will continue to have a positive impact on creation levels, with fewer interconnector constraints and transmission constraints intra-regionally impacting energy flows. Tas Hydro’s fleet of run-of-river hydro...

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13 Nov STAFF PROFILE – Kate Turner

What is the best piece of advice you have ever received? The best piece of advice I’ve ever received is to pull a pram on a beach and not try and push it. Less of an issue in England but it is coming into use now I live in Australia. Name a place you have never been to and would like to visit. Why? I would love to go to Alaska. I find it fascinating the juxtaposition between big industry and natural resources, versus the sheer rawness of the wilderness and landscape. Plus there are over 100 volcanos and its bear to people ratio is 1:21 – that’s pretty roarsome! Who or what inspires...

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13 Nov Mental Awareness Foundation

Finding a charity to donate to can be a tough exercise considering the fantastic work that hundreds of charities do daily. This month Edge would like to shine a light on mental health. Through out October, there were many amazing initiatives taking place such as the Instagram challenge where you used the hashtag #QMHWTakeTime to show how a Queenslander takes time for their mental wellbeing or ‘Light up Brisbane’ where many landmarks around Brisbane lit up in bright purple on World Mental Health Day. All this is to raise awareness of the value of positive mental health and wellbeing. Kate, our Senior Portfolioi Manager also got involved by being part of...

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