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.

17 Jul AEMO Release Inaugural System Plan

Posted at 13:06h in Energy Markets, News by Nick Clark

This morning AEMO released their inaugural Integrated System Plan (ISP). The plan is an evaluation of the likely changes that will be occurring over the next 20 years across the NEM. The ISP builds on the work of AEMO’s annual National Transmission Network Development Plan, and has been developed in response to the COAG Energy Council’s decision in 2017 to adopt the recommendations made in the Independent Review into the Future Security of the National Electricity Market, specifically pertaining to the need for a strategic national plan. AEMO have used probabilistic scenario based analysis and system optimisation to project the reliability and security needs of the power system while simultaneously...

11 Jul ACCC’s recommendations aim to restore electricity affordability

Posted at 18:07h in Energy Markets, News by Nick Clark

Malcolm Turnbull was in Brisbane today promoting “lower energy prices” on the back of the public release of the ACCC’s “Restoring electricity affordability and Australia’s competitive advantage”. The 398 page report is extensive and contains 56 recommendations across the spectrum of the energy market. Edge highlights a couple of key recommendations below. Recommendation 1 The NEL should be amended to prevent any acquisition or other arrangement (other than investment in new capacity) that would result in a market participant owning, or controlling dispatch of, more than 20 per cent of generation capacity in any NEM region or across the NEM as a whole. The provision should be designed to prevent market participants circumventing...

05 Jul Gas Market Update

Posted at 09:24h in Edge Insights, Gas, News by Edge Admin

Domestic gas prices on the east coast of Australia have been through a huge transitional period as a result of the introduction of the LNG export market from Curtis Island. Whilst there have been a broad range of changes, one of the key factors increasingly influencing price that domestic consumers pay is the price of oil. Domestic contracts are now being offered at oil linked pricing which effectively means that if the price of oil increases so will the price of your gas (and vice versa). For large gas producers this is nothing new as hedging commodity prices is part of their core business. For consumers however this may be...

05 Jul STATE OF THE ELECTRICITY MARKET – AUTUMN MARKET OVERVIEW

Posted at 09:23h in Edge Insights, Electricity, Energy Markets, News by Edge Admin

The electricity market was active throughout autumn and the transition into winter. Spot prices were largely stable as has been the case ever since the Queensland Government directed Stanwell Corporation to adopt strategies to lower wholesale prices and Snowy Hydro Corporation seem to be willing to draw down their dam levels to keep prices in New South Wales below $300.00/MWh for each trading period. Stable spot prices doesn’t mean that the market has been uneventful. In Queensland utility scale solar is expected to grow from only having Barcaldine Solar Farm (25 MW capacity) to more than 2,000 MW installed by the end of 2019. In November 2017 Kidston Solar Farm (50...

05 Jul National Energy Guarantee – A Cap And Trade Scheme

Posted at 09:20h in Edge Insights, Electricity, Energy Markets, News by Edge Admin

The Energy Security Board (ESB) released a new version of the proposed National Energy Guarantee (NEG) following feedback from a variety of interested parties. The ‘Draft Detailed Design of the National Energy Gurantee: Consultation Paper’was released 15 June 2018. Also included was a paper by the Federal Government setting out the proposal for key areas of legislation which will be set at a Federal level. To support the papers a number of technical working papers were released to explore key aspects of the NEG. The new version remains focused on reducing emissions in line with Australia’s commitment under the Paris Agreement and ensuring reliability. In addition to these key priorities, a...

23 May Energy Security Board published issues papers on the National Energy Guarantee

Posted at 11:00h in Energy Markets, News by Thomas Dargue

The Energy Security Board has prepared 'issues papers' for the jurisdictions and the Technical Working Groups. There is a total of 14 papers covering topics across the implementation of the National Energy Guarantee. They include topics such as emissions registry, treatment of exceptions and forecasting. The papers have been made publicly available here on the COAG Energy Council website. Once the jurisdictions and the Technical Working Groups have made more detailed technical working papers, these will be available for public consultation. This is expected to be in mid-June. If you would like to know more about the National Energy Guarantee, please contact Edge on 07 3905 9220 or 1800 334 336....

21 May Edge attends Gas Energy Australia 2018 National Forum

Posted at 16:44h in Energy Markets, Gas, News, Renewables by Edge Admin

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...

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

Posted at 16:33h in Energy Markets, Gas, News, Renewables by Edge Admin

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...

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

Posted at 10:11h in Energy Markets, News, Renewables by Edge Admin

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...

01 May Federal Opposition commits to 50% renewable by 2030

Posted at 14:31h in Energy Markets, News, Renewables by Nick Clark

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...