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.

 

23 Mar Edge makes submission regarding NEG

It is important that the National Electricity Market remains secure and Australia can be part of the international commitment to reducing climate change while remaining competitive. The NEG seeks to achieve these objectives while trying to achieve support from both major federal parties. The importance of bipartisan support has been acknowledged, as the market struggles to self-adapt with uncertainty. Having a lasting framework which is flexible enough to allow for changes in a rapidly changing energy market whilst providing certainty to investors who need to recoup long term fixed charges is difficult. Ensuring the market remains efficient and effective is critical to achieving the objectives. It is in this context that...

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19 Mar New SA liberal party leader focused on cutting energy costs

The new South Australian Premier, Steven Marshall, will be looking to reduce energy prices in the state. Mr Marshall is not in favour of setting a state-based target for renewable energy and has noted that even without a target, the state is likely to reach 74% of all electricity being renewable in 2025 and 76% in 2030. Mr Marshall is focusing on batteries and additional interconnection instead. He is aiming to establish a fund within his first 100 days in office to provide a $2,500 subsidy for up to 40,000 household to purchase a battery. The subsidy will be available to households that already have solar PV and will be means tested,...

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16 Mar ACCUs Surrendered under Safeguard Mechanism

Together with the National Greenhouse and Energy Reporting Act 2007, the safeguard mechanism provides a framework for Australia’s largest emitters to measure, report and manage their emissions. It gives businesses a legislated obligation to keep net emissions below their baseline. Baselines are intended to accommodate business growth and allow businesses to continue normal operations. The Clean Energy Regulator recently released the first full year of data on 14 March 2018 under the safe guard mechanism. The safeguard mechanism commenced on 1 July 2016, with the first reporting period ending 30 June 2017. Emissions were reported to the Clean Energy Regulator as part of the National Greenhouse and Energy Reporting scheme on 31 October...

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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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