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.

 

18 May Planning Assessment Commission (PAC) to determine Springvale Mine future

The NSW Government Planning Assessment Commission (PAC) met yesterday to discuss licence conditions for EnergyAustralia and Centennial Coal’s Springvale Water Treatment Project. The Water Treatment Project was proposed to meet conditions as part of a 2015 approval for the expansion of Springvale Mine. The approval condition requires the mine to reduce its release water salinity from 1,200 microSiemens per centimetre (µS/cm) to 1,000 µS/cm by June 2017, and 500 µS/cm by 2019. Failure to meet the condition could result in a loss of licence for the Springvale Mine. This closure would mean there is no coal available for EnergyAustralia’s Mount Piper Power Station which could result in a shut down. The proposed...

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17 May Have forward prices peaked?

Following the closure of Hazelwood Power Station in March 2017, forward prices quoted on the Australian Stock Exchange (ASX) increased across all regions and time periods. However more recently, forward prices were starting to soften until threat of industrial action at Loy Yang A and associated mine caused concern over energy security and availability of supply. The proposed industrial action was called off by the Fair Work Commission and the reduced prices have continued. The price changes are particularly pronounced in Victoria, though the northern states of New South Wales and Queensland have also been affected. There has been issues at the Loy Yang A plant, with three of the four...

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10 May Budget 2017: Morrison reveals Energy for the Future package

Scott Morrison last night delivered his 2017-18 federal budget which included a commitment from the government to deliver affordable and reliable energy through its energy security plan. He reiterated a number of prior announcements including; Snowy Mountains Scheme 2.0, expansion of pumped hydro storage schemes in Tasmania, and a $110m equity investment in a solar thermal project in Port Augusta, South Australia. The Federal Government announced it’s in negotiations with New South Wales and Victorian State Governments to buy Snowy Hydro outright. The government currently owns 13% and experts are quoting a price around $6 billion to purchase the remaining share. Unfortunately, there was no certainty given to any future policies around carbon...

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09 May Update: Loy Yang A Industrial action cancelled

The Fair Work Commission (FWC) today ruled to terminate proposed industrial action at Loy Yang A power station and associated mine. The Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (CEPU) had voted to take strike action due to a dispute with AGL over pay and conditions for its members. AGL determined that the mine and power station couldn’t be operated safely if the strike went ahead and notified the union it would conduct a lock out. The market operator (AEMO) was informed of AGL’s decision and determined that the loss of the power station and mine would present difficulties for the market. AEMO is concerned a reduction...

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05 May Update: Potential shut down of Loy Yang A Power Station

Updates have been received following yesterday’s announcement about proposed industrial action at the Loy Yang A power station and associated mine. The market operator (AEMO) has received updated information on the availability of Loy Yang A and the capacity of Engie’s Loy Yang B which takes coal from the mine. Prior to the announcement and these further updates,  the supply / demand balance was already tight particularly during summer. Figure 1: Medium term outlook 4 May 2017 Source: AEMO The updates received from the Loy Yang A and Loy Yang B power stations show reserve shortfalls increasing and a lack of reserve almost every day starting May 10, 2017. Figure 2: Medium term outlook 5...

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04 May Proposed shut down of Loy Yang A could put energy security at risk

Earlier today, AGL announced their intention to take industrial action against the workers at the Loy Yang A power station and associated mine. AGL informed workers they would be locked out from May 15, 2017. The lock out is in response to the Electricity Trades Union (ETU) announcing industrial action. The disagreement stems from an ongoing dispute over pay and conditions at the Loy Yang A facility. This is not the first time that AGL has threatened to lock out workers over this dispute. A similar announcement was made in December 2016. However, the union decided to cancel its industrial action at that time, and AGL didn’t go ahead with the lock...

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04 May Clean Energy Regulator Releases Report on 2016 Renewable Generation

The Clean Energy Regulator last month released their report into the current status of renewable energy in Australia. The report titled ‘Tracking towards 2020: Encouraging renewable energy in Australia’, reviews operations in 2016 and presents information regarding progress towards the Federal Government’s renewable energy target. 2016 was always going to be a key year in meeting the Government’s target of 33,000 GWh of new renewable generation by 2020. Although there was insufficient renewable generation built during 2014 and 2015, this report maintains an optimistic view that the target can be reached on the current trajectory. Its fact sheet declares there were more than double the number of new renewable power stations accredited...

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27 Apr PM announces measures to keep gas in Australia

The Prime Minister has today announced plans to impose export restrictions on gas producers to ensure domestic supply is maintained at reasonable prices. The Turnbull Government unveiled their Australian Domestic Gas Security Mechanism which will give the government power to implement export controls where there is a shortfall of gas supply in the domestic market. The shortage of gas supplies has resulted in higher prices domestically than the markets where gas is exported. The government wants to guarantee supply, and ensure gas prices are affordable for Australians. Prime Minister, Malcolm Turnbull has met with gas producers in March and April to seek a commitment to increase supply to the domestic market. Although progress...

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21 Apr Additional Pump Storage Hydro in Tasmania

The Federal Government has announced plans to explore adding 2,500 MW of pump storage hydro to Hydro Tasmania’s portfolio. ARENA will contribute $2.5 million towards a study which will explore a replacement of a Central Highlands power station and redeveloping Gordon power station. The study will also examine 13 potential sites for new pumped storage hydro. The additional pumped storage hydro plant could assist with energy security in times of peak demand. Tasmania currently imports power from Victoria, though with the closure of Hazelwood Power Station prices have increased over the last month. Having additional storage capacity will also allow development of further renewable opportunities in the state....

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10 Apr Edge Insights – Issue 3

Edge Insights provides you with the latest news in the energy industry and showcases some of our services that help to ensure businesses maintain their optimal energy arrangements at all times. In this edition: Large Scale Solar Conference Procuring Your Energy Staff Profile: Kristy McGrath State of the Market: Q117 electricity prices overview AEMO releases Gas statement of opportunity Join 'Team Jess' & save lives   Large Scale Solar Conference - Sydney The competitive round for large-scale solar photovoltaics held by ARENA saw enough successful projects to triple existing production of large-scale solar in Australia. Edge is proud to have assisted with several of these projects to bring them to financial close. The...

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