Renewables

19 Dec Update from COAG Energy Council meeting

The COAG Energy Council met today for their 21st meeting. On the agenda was AEMO addressing their work in preparing the grid for summer, bringing down electricity costs and ensuring long term grid reliability and security. AEMO highlighted the priority of work being undertaken to ensure that there is enough dispatchable generation in the NEM and integration of renewable and distributed energy resources. The Ministers agreed to a work program for the ESB to develop advice on a long term, fit for purpose market framework to support reliability that could apply from the mid-2020s. There was very little detail on this framework, however Edge will look to discover more. Reliability Ministers agreed...

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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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31 Aug CleanCo moving ahead

In a media statement released 30 August, the Queensland Government confirmed their intention to establish CleanCo, Queensland’s third publicly owned electricity generator. CleanCo will have a strategic portfolio of low and no emission power generations assets, and will build, own and operate new renewable generation. It is understood that CleanCo will take control of assets including Wivenhoe, Barron Gorge and Kareeya hydro power stations and the Swanbank E gas power station, courtesy of a restructure of the two current publicly-owned electricity generators – CS Energy and Stanwell Corporation. CleanCo is expected to be trading by mid-2019....

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23 Aug Additional Small Scale Solar Coming to Victoria

The Victorian Government has announced that it will offer half priced solar panels to 650,000 households over the next 10 years. This scheme, known as The Solar Home scheme, is currently valued at $1.24 billion and is open to owner-occupied homes with: A combined household income of less than $180,000 per year; andA home value of up to $3 million. Households who are unable to install solar panels can instead choose to get a $1,000 rebate by changing their current hot water system to a solar hot water system. The solar hot water rebate is open to up to 60,000 homes. How will this impact the market? 2017 had the highest rate of installation...

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10 Aug Price of Utility Scale Solar Being Questioned

The engineering company, RCR Tomlinson, went into trading halt on July 30, 2018 and its CEO, Paul Dalgleish, has stepped down. The trading halt is due to an investigation into cost blowouts for unspecified projects, which will hurt the FY18 annual profit. The deputy state secretary of the Queensland and NT Electrical Trades Union, Peter Ong, has stated that RCR has been undercutting other bids by as much as $30 million when bidding for utility scale solar project. Peter Ong's major concern is the use of cheaper labour to try and make up the difference. For the broader market, if RCR have been under-pricing the engineering cost of installing utility scale solar, there...

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21 May Edge attends Gas Energy Australia 2018 National Forum

Edge attended the Gas Energy Australia 2018 National Forum held at the Gold Coast on 17 and 18 May 2018. There were a number of prominent speakers at the forum including Senator Canavan, the Commonwealth Minister for Resources and Northern Australia; Tony Wood, Energy Policy Director at the Grattan Institute as well as Ian Macfarlane from the Queensland Resources Council. Senator Canavan highlighted the improvement in the gas prices during the first four months of 2018 compared to the same period in 2017. He attributed part of the 24% reduction in prices at the Wallumbilla gas hub to the conversations the Federal Government had with key gas producers last year and the...

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21 May Edge presents firming options at the Gas Energy Australia 2018 National Forum

Edge presented at the Gas Energy Australia 2018 National Forum which was held on the Gold Coast on 17 and 18 May 2018. The presentation was aimed at showing the opportunities the changes in the current electricity market held for gas producers. As the electricity market continues to adopt more renewable energy, there is an opportunity to firm this energy by supplying power when the relevant renewable source is not operating. With an increasing demand for firmed renewable products this is a perfect time for gas producers to consider power generation in support of the renewable industry. It is possible to partner up and deliver the types of products that consumers...

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17 May Edge presents at the GEA 2018 National Forum on the Gold Coast

Edge has been invited to present at the Gas Energy Australia 2018 National Forum, which is being held over the next two days on the Gold Coast. The forum seeks to provide important insights and new learnings across a range of industry relevant issues including policy, innovation, supply and security of Gas within Australia. Gas Energy Australia is the national peak body which represents the bulk of the downstream gaseous fuels industry which covers Liquefied Petroleum Gas (LPG), Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG).  The industry comprises major companies and small to medium businesses in the gaseous fuels supply chain – refiners and supplies, fuel marketers, vehicle and...

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01 May Federal Opposition commits to 50% renewable by 2030

Penny Wong, Labor’s foreign affairs spokeswoman has told an emissions summit today that if elected, Labor’s emission target would be a 45% reduction on 2005 levels. The current target under the Coalition is 26% on 2005 levels. Labor has also committed to a target of 50% of energy to be renewable by 2030. Currently, the Coalition is committed to 23.5% by 2020 through the RET scheme. Senator Wong advised that whilst her party has reservations on the National Energy Guarantee they would build on the Guarantee if possible rather than replace it. The comments from Senator Wong carry significant weight as the potentially large increase in the renewable energy target will require...

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26 Apr New Firming Product released to market

As more and more large energy consumers look to contract directly with renewable generators, and renewable generators seek price certainty, a new product referred to as the “clean energy derivative” has hit the market. In the last few weeks, AGL and ERM have released a somewhat standardised product which is built on generation from a renewable source and then “firmed”. AGL’s  “Wind Product Firming Unit” was described as being firmed through physical gas generation whilst also allowing the renewable generator to access the spot market (available in SA and VIC). ERM announced a similar product which is based on generation from solar. These are great initiatives from the retailers who are...

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