Analysis

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Gas outlook highlights peaking plant role in transition

Apart from raising some alarm bells over future potential gas shortfalls, the release of the Australian Energy Market Operator’s assessment of gas needs again highlighted the important role gas generation will play in the energy transition. Gas generation is seen increasingly as a “strategic reserve for power system reliability and security” and “will be critical when it runs”. We take a look.

BY Carl Kitchen Apr 04 2024

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Embedded networks, regulation and energy innovation: Is IPART on the right track?

The NSW Independent Pricing and Regulatory Tribunal (IPART) has undertaken a review of embedded networks and is grappling with how best to set prices to reach its objectives to incentivise customers and embedded network sellers to supply and use energy efficiently as well as enabling the efficient use of energy and encouraging sustainable energy solutions and accommodating innovation and investment in the energy sector. Not a simple task. Are they on the right track? We take a look.

BY David Markham Feb 15 2024

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Expanded National CIS: What are the pros and cons?

The expanded Capacity Investment Scheme (CIS) announced last week aims to bring forward 32GW of generation investment - 9GW dispatchable capacity and 23GW variable renewable capacity - with the costs of the scheme funded by the Federal Government. It can be expected to encourage new capacity which will represent a significant injection of renewables into a grid with ongoing system constraints so does not come without some risks. We take a look at some of the pros and cons.

BY David Feeney Nov 30 2023

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Market assessment highlights evolving market

In late July, the Australian Energy Market Operator published their analysis of the wholesale market for the second quarter of this year. While the media headlines trumpeted price rises of 31 per cent, the report itself paints a much more restrained picture of the state of the market. As the AEC pointed out at the time, the report illustrates a stabilisation when compared with this time last year, with the industry in a much better position heading into winter than it was in 2022.

BY Australian Energy Council Aug 10 2023

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Coal or no coal, all-electric homes are better for the environment

Late last week, the Victorian Government announced a ban on gas connections to new residential homes from 2024. The effect of this policy is that new homes will be required to go all-electric. Even though this is a relatively small step in Victoria’s ambition to electrify all households, it nonetheless triggered a wide range of reactions, including debate on the impact it might have on the state’s carbon emissions. We take a closer look at these claims and clear up some of the misconceptions about electrified homes.

BY Rhys Thomas Aug 03 2023

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High prices cured high prices

Coal and gas prices have been at the forefront of government and policy makers minds since last year and concerns about their impact on Australian energy prices ultimately led to Federal Government price caps. Last year we identified how energy markets were beginning to correct even prior to the intervention. We take another close look at the price trends internationally and locally to see how markets have continued to respond to what were extraordinary challenges.

BY Peter Brook Feb 23 2023

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Deep Dive: 2022 Victorian Election Commitments

Recent data shows that energy is an issue that more and more voters are conscious of as they consider which politicians are best to lead us. The latest True Issues Survey conducted by JWS Research and published in the Australian Financial Review shows that 39% of people believe that energy is one of the most important issue the government should focus on, compared with 20% in March. This movement comes against a background of an energy crisis in June precipitating higher wholesale energy prices and the effects beginning to filter through to consumer bills.

BY Australian Energy Council Nov 24 2022

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Have high prices already cured high prices?

A huge challenge for governments considering intervention in wholesale markets is that consumer prices lag behind wholesale spot and forward prices. Customers are only just starting to feel the effects of events that happened some time ago. But after a year of relentless rises in wholesale prices, there may now be some good news. Gas, coal and electricity prices across the world, and in Australia, have taken a major correction downwards in the last two months from historically high levels, a trend that could well continue.

BY Ben Skinner Nov 17 2022

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A view from the Spree: Australian Energy Delegation to Berlin

While Australia’s east coast energy market winter can justifiably be described as an unprecedented crisis, Germany puts this into perspective as it is facing something much bigger and longer. Germany is also tackling decarbonisation of its energy sector and economy. The Australian Energy Council’s General Manager Policy and Research, Ben Skinner, recently participated in a delegation to Berlin as part of the Australia – Germany Energy Partnership. It provided an opportunity to learn about and from Germany’s decarbonisation efforts. Here we present some reflections on Germany on both the energy crisis and its long-term direction.

BY Ben Skinner Oct 06 2022

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German Energy: Necessity is the mother of (re)invention

The extent of the current energy challenges in Europe stemming from Russia’s invasion of Ukraine has been starkly highlighted by measures being undertaken in Germany. To reduce its reliability on Russian gas Germany is readying around 10,000MW of non-gas generation reserve capacity, including coal plants that were slated for closure. We take a look at the measures and the potential impact of diverging from its coal phase-out strategy.

BY Carl Kitchen Jul 07 2022

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Outlook highlights challenges and change

The latest US Energy Information Administration (EIA) annual energy outlook provides a useful insight into the shifts in both the drivers of electricity consumption and the anticipated transition in the generation sources. In particular it highlights the ongoing important role that gas generation will play in the energy mix as renewables continue to grow.

BY Australian Energy Council Apr 21 2022

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Electrification and 'peakier' generation: The gas outlook

When the market operator released its gas outlook for eastern and south-eastern Australia this week a lot of media focus was on the potential for a “gas squeeze”. But the assessment also flags the potential for electrification to impact gas consumption into the future, the continuing importance of gas generation and a likely change in peak demand periods for its output.

BY Carl Kitchen Mar 31 2022

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Is degasification plausible?

As energy consumers, we are always looking at more efficient and cost-effective ways of heating and cooling our homes and workplaces. In the southern parts of the country, gas remains a mainstay of heating as many still think it is cheaper than electricity, which is often not the case. But is degasification plausible?

BY Peter Brook & Hamish Fitzsimmons Aug 19 2021

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Gas and hydro: Back-up in action

The first quarter of 2021 for the NEM's spot market was notable for its lack of notability. But in a measure of the how the NEM can turn, the Q2 Queensland average price to date is $135.83/MWh, versus $42.64/MWh over Q1. We look at how the market almost always successfully responds to the NEM’s variations, and its reliance on hydro and gas-fired generation to keep the lights on.

BY Ben Skinner & Carol Tran Jun 17 2021

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A changing of the guard: Gas generation projections

The focus around AEMO’s latest assessment of gas supplies for eastern Australia was on its improved outlook. One change in its expectations for gas demand flows from the potential of gas-fired generation in the National Electricity Market. AEMO expects gas-fired generation demand to become more “peaky” and to switch to peaking in winter instead of summer.

BY Carl Kitchen Apr 01 2021

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Getting hydrogen on your own supply

If you Google “technology roadmap”, in the ‘People also ask’ section there’s a question, “What is the purpose of a technology roadmap?” That seems a good place to start.

BY Hamish Fitzsimmons Sep 24 2020

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Gas supply and gas generation put on centre stage

Gas supply and gas generation has again taken centre stage with the release of the most recent Australian Energy Statistics, among other reports.

BY Carl Kitchen Jun 04 2020

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Gas and wholesale prices: A market at work

Changes in global oil prices have had a knock-on effect for gas prices in areas. At the same time recent dramatic falls in NEM electricity prices have followed the domestic gas market which has in turn followed the world hydrocarbon market. This demonstrates these markets is working competitively and as expected.

BY Carol Tran Mar 26 2020

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Major energy changes go unnoticed

Amidst the focus on COVID-19 significant developments for the energy sector have passed largely unnoticed. Victoria’s intent to go-it-alone on energy policy was behind the passage of state legislation that allows it to sidestep national electricity rules for transmission developments, while a change to the emergency reserves was released, and gas exploration was opened up in Victoria.

BY AEC Mar 19 2020

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Barker Inlet: A new technology responding to the market

At the end of 2019 AGL successfully commissioned the 210MW gas-fired Barker Inlet Power Station in South Australia. This new investment occurred entirely in response to market signals, i.e. without subsidies. The power station employs reciprocating engine technology that has not previously been used in Australia at this scale, and provides remarkable flexibility in supplying on-demand power. Despite being fossil-fuelled, this flexibility will actually help Australia’s transition more rapidly to an almost fully de-carbonised electricity grid.

BY Ben Skinner Mar 12 2020

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