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.

 

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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24 Nov COAG EC agrees to investigate the NEG further

The COAG Energy Council met in Hobart today.   There was an agreement to precede with further work on the National Energy Guarantee (NEG) proposed by the Energy Security Board and put forward by the Federal Government.   Only the ACT and South Australia opposed as they wanted the COAG to pursue other ways of cutting emissions.   Queensland decided not to vote, as it is in caretaker mode ahead of tomorrow’s state election.   The COAG Energy Council will meet again to discuss in April 2018 when more details on the NEG will be available. ...

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14 Nov How will the outcome of the QLD election impact the energy market?

QLD will have a state election on 25 November 2017 with one of the issues being cost of energy. Unlike other states, QLD does not have supply concerns which makes energy policy a far simpler matter relative to states like SA or VIC. The Labor Party, is committed to lowering costs as well as reducing emissions whereas the Liberal National Party is willing to forego state based emission targets and focus on reducing energy costs. Edge have pulled out the specific energy commitments made by the major parties below. ALP If Annastacia Palaszczuk is elected, she has committed to the following initiatives: Create a third publicly owned power generation company, “Clean Co”, with...

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10 Nov Energy Security Board – National Energy Guarantee Webinar

The Independent Chair of the Energy Security Board (ESB), Kerry Schott, hosted a 45 minute Webinar this morning to provide further detail on the National Energy Guarantee (NEG). There was no new information provided in the 45 minute webinar, nor was there clarification provided on key concerns that have been raised to date. The Independent Chair suggested that the NEG will be underpinned by the behaviour of retailers to seek the lowest cost blend of generation to meet their energy blend requirements (low emission and dispatchable). Whilst not voicing express concern on the potential market power of the large Gen-tailers there was a tone of apprehension, particularly for SA where...

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