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.

 

25 Oct QLD Premier provides ultimatum to QLD Retailers

QLD energy retailers have been requested by the QLD Premier to pass on lower electricity prices to customers or face public shaming and increased competition through a new government owned retailer. The lower electricity prices are driven by the QLD Governments intervention in the market which consists of ordering Stanwell Corporation (state owned) to lower wholesale prices, the $770 million subsidy for non-solar households for QLD Solar Bonus Scheme and the recommissioning of the Swanbank E Gas power station. Premier Palaszczuk promised to name and shame retailers who did not commit to the pledge by this Friday. Moving forward, Ms Palaszczuk confirmed that her government and the QLD Competition Authority would...

Read More

17 Oct Clean Energy Target dismissed by Federal Government

The Federal Government has released its Powering Forward Plan which seeks to reduce electricity prices while still delivering reliable energy and meeting Australia’s international commitments on carbon reduction. The plan is wide ranging and includes direct subsidies to vulnerable households as well as improved transparency in the gas market. The Plan will look at putting obligations on the retailers to secure a minimum amount of synchronous generation. It was also confirmed that the Government would not be implementing the Clean Energy Target proposed by Finkel, however will obligate retailers to purchase an amount of low-emissions generation. The targets have not been set at this stage. It was also reported that renewable generators...

Read More

09 Oct Energy Minister Josh Freydenburg commits to a response on the Clean Energy Target before the end of the year

The Australian Financial Review National Energy Summit kicked off in Sydney this morning. Within the first hour of the summit beginning, Federal Environment and Energy Minister Josh Freydenburg has committed to respond to the Clean Energy Target (CET) recommended in the Finkel Review. This is the only outstanding recommendation from the Finkel review that has not been accepted by the Turnbull Government. Edge are at the AFR’s energy summit and will continue to provide updates over the next two days....

Read More

27 Sep Energy deals cut costs

Edge Energy Services (Edge) provides expert advice to large energy consumers. Good advice starts with understanding the customers energy constraints, requirements and motivations. This means any identifying seasonal or daily trends in demand as well as risk appetite and any green commitments. Once Edge understands the critical information we will facilitate a tailored agreement with an energy provider. For more complex energy portfolio’s, customers may benefit from on-going management services particularly when progressively purchasing or taking spot exposure. Over the past 18 months wholesale energy prices have increased. This has forced consumers to think more laterally about their energy costs. Most energy providers will base their pricing offers on the forward...

Read More

26 Sep Gas production gap grows wider

The Australian Energy Market Operator (AEMO) recently published an update to the Gas Statement of Opportunities. The sticking point of the publication is a forecasted 54 petajoule and 48 petajoule (PJ) shortfall in 2018 and 2019 respectively. The forecast shortfall is three times higher than the forecast earlier this year. The report estimates aggregate gas production in 2018 to be 1,891 PJs and a shortfall of 54 PJs, or as a percentage, 3% of total production. This is a very small margin and given the level of assumption contained in the report Edge believe it should be considered cautiously. Putting aside the potential inaccuracies of the report, it is important to...

Read More

12 Sep The AFR reports that the Federal Government is moving away from a CET

According to an article published by the Australian Financial Review earlier today, the Federal Government has given notice that it is moving away from a Clean Energy Target (CET). If the government chooses to move away from a CET, the market will continue to suffer from increased policy uncertainty. Policy uncertainty is having detrimental impacts on the development of new energy generating resources, particularly when securing capital. Without access to affordable capital new energy resources are less likely to be constructed and consumers are likely to incur further increases in energy prices. In a timely release from the Australian Energy Market Commission (AEMC), today released a discussion paper on the strategic...

Read More

08 Sep AEMO Request for Long Notice RERT – Second Round

On 13 July 2017, the Australian Energy Market Operator (AEMO) issued an Invitation to Tender to seek responses from potential providers for the Long Notice Reliability and Emergency Reserve Trader (RERT) contracts (“First Round ITT”). On 6 September, AEMO followed up the First Round ITT with a Second Round Request for Long Notice RERT after additional forecast reserve requirements for the period January to March 2018. In accordance with the National Electricity Rules and the RERT Guidelines, AEMO is now issuing a second round invitation to Tender for Long Notice RERT (Second Round ITT) seeking offers for the provision of long notice reserve for January 2018 to March 2018 in Victoria...

Read More

06 Sep AEMO fears insufficient generation will cause load shedding

The Australian Energy Market Operator (AEMO) published their annual Electricity Statement of Opportunity (ESOO) on 5 September 2017. The report highlights that both Victoria and South Australia could face involuntary load shedding during the 2017-18 summer. AEMO points to ‘radically changing dynamics of the power system’ which has resulted ‘in a tight supply-demand balance’. It also points out that the responsiveness and resilience of the system is under threat from plant closures and extreme weather event. AEMO is concerned that both Victoria and South Australia could face enough involuntary load shedding that the reliability standard cannot be met. This means that AEMO is unable to dispatch the market to keep unserved energy...

Read More

30 Aug Energy Retailers and Prime Minister meet again

The large electricity retailers have followed up on their previous meeting earlier this month in Canberra, meeting with Prime Minister Malcolm Turnbull in Sydney today. The topic of discussion was in regard to retailers contacting their existing customers who are on high standing electricity rates and informing them of more competitive deals available to them. The retailers agreed to the PM’s request to make contact with their customers on high standard rates and will be writing to over 2 million customers. This is one of the measures taken by the Turnbull government to reduce energy costs for Australian households. It was noted that the energy retailers stressed to Mr Turnbull the...

Read More

23 Aug Victoria announce 650 MW reverse auction and Queensland launch “Renewables 400”

Earlier today the Victorian Premier Daniel Andrews and the Minister for Energy, Environment and Climate Change Lily D’Ambrosio announced the introduction of legislation for Victorian Renewable Energy Targets (VRET); the largest renewable energy auction in Australia. The ministers also announced the award of contracts for two large scale solar plants to supply energy to Melbourne’s tram network. Daniel Andrews announced that the Victorian Government would conduct a reverse auction for 650 MW of renewable capacity. Details of when the auction would be taking place were not provided. This move by the Victorian Premier will help towards achieving the states renewable energy target of 25% by 2020 and 40% by 2025. Earlier this...

Read More