EnergyConnect: transformational highway or white elephant?

Last week, the AER delivered their final regulatory approval for Project EnergyConnect (PEC) with total costs of $2.28b. This signifies the end of a process that began back in 2016 when the initial project specification report was released. There was some uncertainty around the viability of the project. However, a $295 million investment from the […]

5MS is coming but it still remains a known unknown

The shift from 30-minute settlement to 5-minute settlement (5MS) is fast approaching – 162 days away but who’s counting. As a reminder, the current settlement price (SP) is determined by averaging six dispatch interval prices within a half-hour period. From October 2021, the dispatch price (DP) will be the settlement price. While the NEM already […]

Slow is smooth and smooth is fast for the NEM transition

Reporting season is all but over for the energy majors in Australia and that has left us with a bevy of takeaways on the sentiment for the not-so-distant future. A key thread among reports has been the current low-price environment in the NEM. This is a topic that we have explored in previous weeks, however, […]

Lower prices but a similar story for those setting the price

2020 was one for the books with plenty of interesting events happening worldwide and also in the energy markets. For the NEM specifically, it was a time of significant changes in price outcomes compared to the previous years of comparatively higher prices. However, now comes the question of whether NEM prices continue to follow the […]

A little [ price volatility ] goes a long way

The year of 2020 is slowly ending which means that summer has well and truly arrived. However, for those with some connection to the NEM, this is a period where speculation peaks in terms of what summer has in store for us – and with good reason! Of all parts of the year, the March […]

Battery of the nation + hydrogen export: Can they do both?

The Tasmanian government have announced that they will set a target to double their current renewable generation by 2040. Based on current market dynamics, this means that Tasmania will likely need consistent renewable generation of around 2.4 GW (assuming average requirements) or 3.4 GW (if scaled to peak demand). This opportunity to double renewable generation […]

Out of sight, not out of mind: DER record growth continues

The growth in behind-the-meter distributed energy resources (BTM DER) has been a key feature of the NEM over recent years. BTM solar has grown from ~1-2% of total energy supplied five years ago to ~6% this year. In fact, looking within the day, the percentage of supply being provided by rooftop solar has been as […]

SA shatters record: lets talk about the elephant in the room…

As springtime rolls around in the NEM, those with interest in the market are always keeping an eye on South Australia to see just how low operational demand will go and when (not so much if) the record will be broken. This year has not disappointed. On 11 October 2020 at 12:30, South Australia recorded […]

Need a little controversy; ‘cause it feels so empty without me?

Last week, in our chart of the week we wrote about the Federal Government’s announcement surrounding the replacement of Liddell with 1,000 MW of 24/7 dispatchable gas capacity. A week can be a long time as this figure has now fallen to 250MW – much more in line with AEMO’s suggestion in the ESOO that […]