Renewables

18 May Future of Contract Markets and the Baseload Swap

It is no surprise, when I say the National Electricity Market (NEM) is going through a vast transition and transformation, with an ever-increasing penetration of renewable generation, in the form of both utility scale renewable generation and household installations. The world as we know is also battling the global pandemic that is Coronavirus. This has had a significant impact on people and their livelihoods and health.  along with a significant impact on energy markets around the globe. To top it all off, energy markets have had to endure a supply price war recently, between OPEC’s unelected leader, Saudi Arabia and non-OPEC oil producer, Russia. With a rapidly evolving and ever-changing energy landscape, what should our contract markets look like?...

Read More

01 May What’s Oil got to do with it?

There is no doubt that energy markets and the energy industry itself are rapidly evolving and moving away from fossil fuels. The evolution of energy seems to be coming, and only coming faster given this tumultuous time the people and countries across the world have endured. Lets start with oil; Australian’s across the nation are very aware of the recent global oil price crash to new historic levels, particularly when it is reported in the news headlines that Australian’s are seeing almost 15-year lows at the petrol bowser. The impact of the recent oil price crash however does not stop at the bowser, it has and will continue to have...

Read More

27 Mar COVID-19 / NEM Impact Statement

COVID-19 has impacted us all in recent weeks. At Edge we have put plans in place that have allowed us to provide all services our clients require without disruption. We are working diligently to understand the impacts COVID-19 could have on the energy markets in the short and longer term. As more information comes to light, we will provide further updates on the impacts to the market and our clients. As we are only a few weeks into this pandemic we will try and provide an understanding of the impact COVID-19 could have on the market. Oxford economics, a team of 250 economists, has recently published a paper providing a high-level update on the impact of the pandemic on the world...

Read More

04 Feb South Australia separated from the NEM!

The South Australian (SA) region has been separated from the remainder of the NEM regions due to the destruction of the main alternating-current (AC) interconnector between SA and Victoria (VIC). What occurred: On the 31st of January 2020 during wild storms that lashed eastern SA, western VIC, the 500kV main (AC) interconnection cable running through southwestern VIC was disconnected due to transmissions towers east of Heywood (Victoria) and west of Geelong (Victoria) collapsing in damaging storms and extremely strong winds.When this occurred, Interconnection flows quickly swung from exporting MW’s into VIC, to importing MW’s into SA.Alcoa’s Portland aluminium smelter tripped which only exacerbated the problem, A handful of wind farms were...

Read More

28 Jan World Economic Forum – EU’s proposed carbon border Tax

The World Economic Forum was held late last week in Davos (Switzerland) with foreign leaders all around the globe coming together to talk about the global economy and hopefully generate some fruitful action. Probably one of the more market shifting proposed schemes put forward at the World Economic Forum was that of European Commission President, Ursula von der Leyen. Von der Leyen’s proposal is a daunting one from Australia’s point of view, as it could have a significant impact on the country’s vast economic dependence on exportation of minerals and goods. The proposed scheme, labelled the ‘carbon border adjustment mechanism,’ would be a tax applied to carbon-intensive good from those...

Read More

13 Jan Semi-scheduled and Intermittent Non-scheduled Generators urged to advise of De-ratings

A new market notice within the National Electricity Market (NEM) posted by the Australian Energy Market Operator (AEMO), one we have not see before was issued to all market participants on the 23/12/19. The market notice requested and served as a reminder for all semi-scheduled and intermittent non-scheduled generators to ensure they update their market availability bids, update their SCADA Local Limit or, if unavailable, advise AEMO control room to implement a quick constraint to the reduced available capacity level; and update intermittent generation availability in the EMMS Portal to reflect reduced plant availability as is required under the National Electricity Rules (NER), per NER 3.7B(b).limits. This was an interesting...

Read More

09 Jul High solar generation vs spot prices in Queensland

Solar generation and its impact on spot price is a topic of major discussion, particularly in the ‘Sunshine State’ of Queensland where there is a continuous pipeline of solar generation development. This raises the question: is strong solar generation having an impact on spot prices, and if so, is it lowering or increasing prices? Increasing Large-scale Solar Penetration in the NEM It is no secret that solar generation has increased dramatically over the last 12-18 months. From 1 January 2018 to 30 June 2018 (inclusive) the average daily production of large-scale solar generation in Queensland was only approximately 14.2 MW, only accounting for 0.085% of total Queensland generation. (Source: AEMO) For the six...

Read More

20 May LNP Inertia Continues

In a surprise outcome the LNP maintained leadership over the weekend noting that it remains unknown whether or not the LNP will form a majority government. Energy and climate were at the heart of this election with Labor putting forward material initiatives that would increase investment in renewable energy generation (increased funding to the CEFC) and reduce emissions through the extension of the safeguard mechanism, amongst a number of other initiatives. The LNP are less ambitious and maintain the emissions reduction target of 26-28% below 2005 levels by 2030. The LNP will extend the Climate Solutions Fund by providing additional funding to the Emissions Reduction Fund which is the reverse...

Read More

15 Apr Queensland spot prices – March vs April to date

In Queensland, we have observed lower daytime spot prices since the beginning of April, relative to March averages. Taking a closer look at half hourly average spot prices seen so far in April, we can see that between 8am and 4pm spot prices have been softer than the same periods in March. Following this, spot prices are higher in the evening peak periods. Whilst it is a very small data set, this is the relationship that many in the market expect to evolve. Softer spot prices in the day will motivate generators to price more aggressively (price higher) in the evening peak to increase earnings which have been lost during the day. Should...

Read More

12 Mar Clean Energy Regulator confirms 2019 RRP and STP

On 12 March 2019, the Clean Energy Regulator (CER) has confirmed the 2019 renewable power percentage (RPP) and small-scale technology percentage (STP) has been set by legislative amendment. The 2019 RRP has been set at 18.6% and the 2019 STP has been set at 21.73%. As explained by the CER, the RRP and STP set the annual statutory demand for large-scale generation certificates and small-scale technology certificates in the Renewable Energy Target. If you have any questions regarding the 2019 RRP or STP or any other matter relating to energy, please contact Edge Energy Services on 07 3905 9220 or 1800 334 336. ...

Read More