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.

 

07 Mar STATE OF THE ELECTRICITY MARKET – Q118 MARKET OVERVIEW

In this summer edition of the market update we look at some of the issues which is causing price differences in wholesale prices across the east coast of Australia. Since the start of summer, the divide has mainly been across the Murray river with QLD and NSW to the north and VIC, SA and TAS sitting to the South. The summer started in December with modest spot prices across all the regions. The region with the highest price was TAS at $90.96/MWh with the lowest price being QLD at $76.56/MWh. The interconnectedness of the market means that prices in NSW was similar to QLD while SA and VIC were closer to...

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07 Mar Gas Market Update

ACCC GAS INQUIRY – INTERIM REPORT The ACCC released the second interim report into gas supply arrangements in December 2017. In the initial report (released September 2017) it was reported that there would be shortages in gas supply available to east coast consumers in 2018. The report found that buyers of gas were receiving offers from a reduced number of suppliers and that prices offered were above the ACCC’s benchmark prices. It was also noted in the report the lack of participation from the QLD LNG producers in the domestic market. This reported lack of participation from the LNG producers prompted the Federal Government to act. The result was the creation...

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16 Feb Energy Security board consultation paper

The first public consultation paper for the National Energy Guarantee (NEG) has been released today by the Independent Energy Security Board (ESB). Dr Schott, the ESB Chair person said “The consultation paper seeks feedback from stakeholders on the high level design of the of the mechanism’s reliability and emissions component”. The release of this paper is the first step in a consultation process that will occur over coming months. The ESB has advised that a high level design of the NEG will be provided to the COAG Energy Council in early April, ahead of a COAG meeting later that month when the report will be considered. Edge will provide more details in the...

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05 Feb Tesla and SA Government plan to build a 250 MW “virtual power plant”

The South Australian Premier, Jay Wetherill has announced that a deal has been made with Tesla to install 50,000 rooftop solar PV systems and Tesla batteries on homes in South Australia. The total capacity of the solar PV is expected to be around 250 MW or the size of a small power station. The first 1,000 systems are already under way, being built by Housing Trust which is the South Australian Government’s low-cost housing arm. If successful, a further 24,000 government households will have the system installed, before being opened to private participation. The details of the deal between the South Australian Government and Tesla is not known. Specifically, any success criteria...

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24 Jan ASX stops cap trading from July 2021

The Australian Energy Market Commission (AEMC) recently changed the rules governing electricity prices in the National Electricity Market (NEM). Instead of being paid on a 30 minute basis, the market will be paid on a 5 minute basis. The main benefits of moving to 5 minute prices are greater participation of demand side management including batteries and less opportunities for gaming the market. For a full discussion see the AEMC website: http://www.aemc.gov.au/Rule-Changes/Five-Minute-Settlement One of the main concerns over the change to 5 minute markets is that it will be difficult for traditional peaking plant to ramp up fast enough during high prices. Many of these peaking plants sell what is known as...

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10 Jan Solar Reserve receives approval for SA concentrated solar thermal plant

The Port Augusta located, concentrated solar thermal plant has reached a significant, yet not surprising, milestone in achieving development approval for the plant. The Aurora plant will have 150 MW of capacity and 8 hours of storage. The development approval suggests that the $110 million concessional loan from the Federal Government is all but secured. It is understood that the funding was allocated in the May 2017 Federal budget and to be administered through ARENA. The plant is scheduled to deliver 100% of its output to the SA Government under a long term agreement beginning in 2020. Further information can be found on our previous article http://www.edgeenergyservices.com.au/edge-news/150-mw-solar-thermal-plant-constructed-south-australia/ If you would like to know more...

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21 Dec Snowy Hydro 2.0 found to be feasible despite costing twice as much

Today, Snowy Hydro released their feasibility study into the expansion of the pumped hydro-electric storage. The study outlined that the potential upgrade will increase capacity by up to 2,000 MW at full capacity and will provide approximately 350,000 MWh hours of energy storage. It has been agreed by Snowy’s board of directors to progress the project from feasibility stage towards final investment decision. According to Snowy Hydro, the project will be internally funded and meets financial hurdle rates under different scenario’s. The cost of the project is estimated to be $3.8-$4.8 billion.  This does not include the required transmission network upgrades  required to deliver the power from the upgraded facility. This...

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11 Dec AGL’s NSW Generation Plan

On Saturday AGL released their NSW Generation Plan. The Plan sets out AGL’s preferred option to extending the life of the Liddell Power Station. The Liddell replacement plan is a combination of new renewable energy resources, demand response technologies and an upgrade to the Bayswater power station. According to AGL the weighted levelised cost of energy (LCOE) of the replacement plan is $23/MWh cheaper than the cost of extending the ageing and increasingly unreliable Liddell power station. Within AGL’s Liddell replacement the following projects are categorised as approved: 453 MW Coopers Gap wind farm at $62/MWh LCOE 200 MW Silverton wind farm at $62.00/MWh 100 MW upgrade to Bayswater power station Purchase...

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08 Dec Planet Ark Power launches Llewellyn rooftop power station

Llewellyn Motors in Ipswich QLD have partnered up with Planet Ark Power to design and install Australia’s largest privately owned Solar and Smart Battery rooftop power station. Yesterday Edge Energy Services attended the opening of the rooftop power station at Llewelyn Motors. The power station is unique in using the new technology dSTATCOM developed by Planet Ark Power to heal and support the grid, which allows commercial solar sites to export to the grid intelligently and significantly increase return on investment. Consisting of 1,232 REC solar panels (332kW), it is expected to reduce the dealership’s carbon footprint by 8400 tonnes and save over $2 million on energy over the next twenty years. Edge...

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28 Nov AEMC release their final determination on five minute settlement

The Australian Energy Market Commission (AEMC) has released its final determination into the five minute settlement rule proposal. The AEMC decided to change the draft rule however most of the changes it made were fairly minimal. The substantial change, that generators would be paid on a five minute basis instead of 30 was adopted. The most material change was that all demand would be settled on the five minutes instead of 30 minutes which was originally proposed.  This means that all type 4 meters will have to be able to record five minute data. AEMC has allowed a transitional period for this change to take place. The final rule will commence 1...

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