Analysis

ANALYSIS Continue Reading

Western Australia Goes to the Polls: What’s in Store for Energy?

As early voting opened ahead of Western Australia’s 8 March state poll energy issues and proposals continued to make headlines. In particular, the ALP’s announcement that if re-elected it would provide generous support to households to install battery storage was prominent There have also been questions raised about whether a re-elected ALP government would be successful in its energy transformation to allow the phasing out of state-owned coal plants by 2030. In contrast the Liberal Party has pledged to maintain and extend the state’s coal plants until more gas generation can be brought into the system. The Nationals have announced support for microgrids and more stringent approval processes for renewable energy projects, while the Greens are promoting a 10 per cent Clean Energy Transition Levy on onshore gas projects. We take a look at the key energy policies presented to voters.

BY Carl Kitchen & Tom Monaghan Feb 27 2025

ANALYSIS Continue Reading

Is time running out for new generation in WA?

As Western Australia edges towards its next State Election in March, the energy sector continues to be a hot button topic. Already this year, the South West Interconnected System (SWIS) has been forced to navigate record peak demand and highest demand days, a massive test for operators and market participants who successfully dealt with the challenge. Despite this resilience, the timely delivery of new generation will be critical to address the forecast capacity shortfall by the end of the decade and ensure a reliable and affordable system for industry and consumers. Removing the bottlenecks preventing new generation from connecting to the grid in a timely manner will be crucial. Here we take a look at the challenges of delivering new projects in WA and cast a spotlight on some of the issues that still need to be addressed.

BY Graham Pearson Feb 13 2025

ANALYSIS Continue Reading

Tackling growing costs of energy reforms

The Australian Energy Market Operator (AEMO) recently submitted a rule change proposal in Western Australia to amend the way its budget is set. The changes would have resulted in a shift from a fully regulated model to a NEM-like unregulated approach. Stakeholders raised concerns the proposed rule change would reduce transparency and accountability, and Energy Policy WA rejected the proposal last week. At the same time AEMO lodged its rule change proposal, the Australian Energy Council engaged Rennie Advisory to identify the root causes for what have become AEMO’s unpredictable and steadily rising costs. Here we take a look at AEMO’s rule change proposal, the issues identified by Rennie Advisory and some options that could be considered.

BY Graham Pearson Dec 12 2024

ANALYSIS Continue Reading

Is there a better way to manage AEMO’s costs?

The market operator performs a vital role in managing the electricity and gas systems and markets across Australia. In WA, AEMO recovers the costs of performing its functions via fees paid by market participants, based on expenditure approved by the State’s Economic Regulation Authority. In the last few years, AEMO’s costs have sky-rocketed in WA driven in part by the amount of market reform and the challenges of budgeting projects that are not adequately defined. Here we take a look at how AEMO’s costs have escalated, proposed changes to the allowable revenue framework, and what can be done to keep a lid on costs.

BY Graham Pearson Sep 19 2024

ANALYSIS Continue Reading

Energy transition: Can WA unlock enough investment?

It’s been a packed few weeks for WA’s energy sector with the release of the reserve capacity mechanism review and an assessment of future demand. Both provide useful insights into the scale of the state’s energy transition and how the State Government plans to tackle the challenges. While there are some big numbers and major commitments, there are also a lot of gaps in the detail. We take a look at what it means for the energy sector and highlight some outstanding issues.

BY Graham Pearson May 18 2023

ANALYSIS Continue Reading

Are hydrogen targets the answer?

The West Australian Government is exploring options to establish targets for blending in gas networks and to introduce an obligation for electricity retailers to buy an amount of electricity sourced from renewable hydrogen – a Renewable Hydrogen Target. We take a look at what is currently being proposed and the challenges that need to be considered.

BY Graham Pearson Aug 25 2022

ANALYSIS Continue Reading

Will the WEM have enough capacity?

AEMO recently released its latest Wholesale Electricity Market Electricity Statement of Opportunities. The ESOO is important in setting the Reserve Capacity Requirement and but the biggest takeaway from this year's ESOO is the sharp reduction in excess capacity in the short term and a forecast capacity shortfall from 2025-26.

BY Graham Pearson Jun 30 2022

ANALYSIS Continue Reading

Do generators earn adequate revenue?

Electricity markets are always evolving to address new and emerging issues. The Wholesale Electricity Market (WEM) has seen its share of reforms and changes. Together they can have a substantial impact on generators, so to better understand the implications the Australian Energy Council (AEC) engaged Marsden Jacobs Associates (MJA). MJA’s review is pertinent across Australia and here we look at the key findings and consider whether generators in the WEM receive adequate revenue to support the dramatic transition underway.

BY Graham Pearson Apr 07 2022

ANALYSIS Continue Reading

Is it time for a full review of WA’s Reserve Capacity Mechanism?

Reform has been a constant in WA's Wholesale Electricity Market in recent years. The Energy Transformation Strategy was established in 2019 to ensure power system reliability and security. Fast forward, and the same issues that led to that work have amplified, and we now have Stage 2. We look at what it means for the Reserve Capacity Mechanism and generators in the SWIS.

BY Graham Pearson Oct 21 2021

ANALYSIS Continue Reading

Is minimum demand causing a major headache?

AEMO’s Wholesale Electricity Market ESOO offers insight into the future of the WEM and its potential challenges. It presents a confident picture of generation meeting demand over the forecast period, while on the flipside it singles out the massive uptake of rooftop solar PV for causing a significant near-term issue.

BY Graham Pearson Jun 24 2021

ANALYSIS Continue Reading

Will network operator batteries hurt competition?

Australia is grappling with the rapid change in how and when electricity is generated and consumed. In Western Australia, recent changes to the Electricity Networks Access Code allow expansion of the role of the network operator. Oakley Greenwood has considered what the amendments mean for competition in the Wholesale Electricity Market.

BY Graham Pearson May 13 2021

ANALYSIS Continue Reading

New Energy Jobs Plan: Bold or brash?

The political landscape in WA offers different visions for the best way to obtain a reliable, secure and cost-effective energy system. The WA Liberal’s recently unveiled “New Energy Jobs plan” is head turning for the numbers included and the aggressive move towards renewables. We look at the policy and what it might mean for key stakeholders.

BY Graham Pearson Feb 18 2021

ANALYSIS Continue Reading

Predicting the future: How four scenarios will shape the WEM

Power systems are often unplanned and organic, changing over time to reflect new technologies, population movements, and economic growth. The SWIS in Western Australia is no different.

BY Graham Pearson Aug 13 2020

ANALYSIS Continue Reading

New Access Code: What does it mean for competition?

Western Australia’s Electricity Networks Access Code is set to undergo a major shake-up.

BY Graham Pearson Jul 09 2020

ANALYSIS Continue Reading

Western Australia’s dramatically changing electricity consumption

Recent data from the AEMO shows that demand and consumption in Western Australia has changed markedly from last year.

BY Carol Tran Jul 02 2020

ANALYSIS Continue Reading

Setting the mark: Why price limits should change in WA

Alongside the lofty energy reforms being rolled out in Western Australia the annual review of the energy price limits has quietly captured the attention of market participants and industry watchers.

BY Graham Pearson May 28 2020

ANALYSIS Continue Reading

DER: Does WA’s roadmap set the right direction?

Last week Western Australia released a Distributed Energy Resources Roadmap that seeks to set out a framework to allow the further development and integration of DER into the South West Interconnected System over the next five years.

BY Graham Pearson Apr 09 2020

ANALYSIS Continue Reading

Renewable Hydrogen Strategy launches

On 19 July, the Western Australian Government released its Renewable Hydrogen Strategy, which aims to position the state as a leader in the global renewable hydrogen industry.

BY Scott Davis Aug 01 2019

ANALYSIS Continue Reading

System security: Grappling with the DER dilemma

The Australian Energy Market Operator has flagged the need to update technologies within Western Australia’s power grid as well as make market changes on the back of the rapid uptake of solar PV and distributed energy resources generally.

BY Scott Davis May 30 2019

ANALYSIS Continue Reading

WA electricity reform and DER: What are the customer implications?

Distributed Energy Resources have the potential to offer customers lower cost, reliable and efficient energy. However, while there has been a growing focus on DER benefits, they also come with some challenges.

BY Scott Davis Apr 04 2019

1 2