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.

 

02 Feb Will the Federal Government Climate Change Review affect the price of Large-Scale Generation Certificates?

A commitment by the Federal Government to reduce emissions by 2030 will see a Climate Change Review conducted this year. The government is focused on meeting our international emissions reduction commitments while also maintaining energy security and affordability. The focus of this review is to look at a range of options to reduce emissions by 26 to 28 percent below 2005 levels. The review will consider the integration of climate change and energy policy, the impact of state-based policies on the national approach, the role of the Emissions Reduction Fund and its safeguard mechanism, complementary polices, and potential goals beyond 2030. While the review does not explicitly mention the Renewable Energy Target...

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02 Feb High Demand contributes to record prices in Northern States

Increased electricity demand in both Queensland and New South Wales during January 2017 has had a significant impact on electricity prices for this period. Queensland maximum and average demand was 8 percent higher than January 2016, while New South Wales was 9 percent higher compared to the previous year. Higher demand helped in setting record prices for both states. The Queensland spot price averaged $197.65/MWh for January 2017. The previous record for January was set in 2013 when the price was $155.90/MWh. New South Wales reached $82.69/MWh eclipsing the previous January record of $66.95/MWh set in 2001. Higher spot prices are currently expected to continue for the foreseeable future with forward contracts for...

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25 Jan Confusion following the release of ERMS LGC Fulfilment Plan

Today the Australian Financial Review (AFR) has released a misleading news article which states that ERM Power has chosen to pay the penalty price of $65/LGC instead of paying the current market price of $90/LGC. This article has been released following an ERM Power announcement to the ASX yesterday. Even at $90/LGC it is more efficient for ERM Power to purchase LGCs then pay ‘penalty price’. ERM are utilising the flexibility of the scheme to surrender LGCs in future years where they can off-set earnings. ERM Power has a number of tax losses which they want to bring forward by paying ‘penalty price’ (which is not tax deductible) now and using the...

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19 Jan Why the recent price spikes in Queensland Electricity?

Background The average spot price for the QLD region on Saturday 14 January 2017 was $1,472.95/MWh. 2017 had already seen warm weather and an increasing volatility before Saturday however this was the first day where the 24 hour period averaged more than $1,000/MWh. This report will explore some of the reasons for the high prices on this day. Temperature and demand Temperatures for January have been above average in general. The lowest maximum temperature recorded so far this month has been 26.8 degrees on Tuesday 3 January 2017.This was followed by the highest maximum so far of 35.6 degrees on Thursday 12 January. Saturday 14 January had a maximum temperature of 35.0 degrees...

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15 Dec AGL considering Loy Yang A shutdown in response to industrial action

Update 16/12/2016: According to the Australian Financial Review (AFR) The Construction, Forestry, Mining and Energy Union (CFMEU) has backed down on its threats of industrial action at AGL Energy's Loy Yang power station, putting an end to a whirlwind eight hours that saw AGL responding with an indefinite shut down and the Victorian government intervening to avert significant damage to the state's energy supplies. An ongoing dispute regarding pay and conditions at the Loy Yang A power station in Victoria could result in industrial action and subsequent employer action at the facility. AGL’s negotiation with the CFMEU over an 18 month period has failed to yield an agreement to suit all parties. This led...

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09 Dec Federal Government opposes industry opinion on Emissions Trading Scheme

The Federal Government has denied it will impose an emissions intensity trading scheme despite public comments made this week by Environment Minister Josh Frydenberg. Mr Frydenberg had announced that this may be an option explored during a review into Australia’s climate policies. This review was planned by then Prime Minister Tony Abbott in 2015. Prime Minister Malcolm Turnbull, refuted Mr Frydenberg’s public address and announced the government wouldn’t consider an emissions trading scheme. Mr Turnbull describes it as another form of carbon tax. The government has continued with this stance even though business groups and the Climate Change Authority have been advocating such a scheme. There is also commentary that a joint report by...

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07 Dec Edge Insights – Issue 2

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: Hazelwood Closure Impacts East Coast Prices Softening of LGCs Student Gains Work Experience Energy Snapshots Gas Market Update National Electricity Update   NEWS OF HAZELWOOD CLOSURE November’s announcement by Engie regarding the closure of Hazelwood power station has seen an increase in east coast energy prices. While the largest increases have been evident for Vic where Hazelwood is located, there has also been an impact on prices in NSW and Qld. Most of the increases have been contained to 2017 prices with smaller...

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03 Nov Markets move again on Hazelwood closure

Workers at Engie’s Hazelwood Power Station were today called to a meeting to be advised of the closure of the plant in March 2017. Hazelwood has been producing low cost baseload for more than 50 years in Victoria. The brown coal power station has been producing approximately 20% of Victoria’s energy demand and has helped make Victoria the cheapest state in the national electricity market for wholesale electricity.  This is no longer the case with both Queensland and New South Wales now cheaper in Q217 and Q317. While the largest increases have been evident for Victoria, there has also been an impact on prices in New South Wales and Queensland. Most of the...

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