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.

 

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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30 Mar Clean Energy Regulator Releases 2017 Surrender Percentages

The Clean Energy Regulator has released the 2017 environmental certificate requirements. The number of Large-scale Generation Certificates (LGCs) which must be surrendered each year is fixed. However, the surrender percentage depends on the expected consumption of electricity across Australia less any applicable exemptions for energy intensive trade exposed industries. The surrender percentage for LGCs in 2017 is set at 14.22%. This is higher than the 2016 surrender percentage of 12.75%, but lower than what was widely expected in the market. The STC percentage was set at 7.01% which is lower than the 2016 target of 9.68%. Each year, the Clean Energy Regulator must determine how many STCs will be created during the...

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28 Mar AEMO Releases Recommendations to Avoid Further ‘Black Outs’ in SA

The Australian Energy Market Operator (AEMO) has released its final report on the South Australia (SA) region black system event on 28 September 2016 (Black System). During the event some 850,000 SA customers lost electricity supply, affecting households, businesses, transport and community services, and major industries. In the report, AEMO notes that with less synchronous generation online, the electricity system is experiencing more periods with low inertia and low available fault levels. This is making it increasingly difficult to keep the system secure. It is no longer appropriate to rely solely on synchronous generators to provide essential non-energy system services (such as voltage control, frequency control, inertia, and system strength). Instead,...

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20 Mar A Plan for South Australian Power

The South Australian Government released their plan for their energy future. It contained a number of new strategies including: 100 MW battery farm 250 MW gas fired plan for emergency use only 200 MW of emergency plan until the gas plant can be brought online Local power to direct plant and the interconnectors with Victoria Energy Security Target under which a portion of electricity must be sourced from within South Australia South Australian Gas Incentives which would provide an additional $24 million for local gas exploration which would primarily be made available for South Australian consumers The South Australian Government is also planning to tender its consumption to allow a new...

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