All gas demands are equal; but some are more equal than others

One of the key objectives of the federal government’s proposal for a ‘gas-led recovery’ – besides building a 250MW gas-powered generator (GPG) – is reducing gas prices through increased supply to domestic consumers. The proposal highlights the need to invest in domestic gas exploration and transportation, as well as create an ‘Australian gas hub’ in […]

SA ducks in the news (again); what about the QLD duck?

South Australia is back in the news again with the state achieving a world-first on Sunday, October 11, 2020. According to a recent update from the Australian Energy Market Operator (AEMO), between 12-1PM, solar power provided 100% of South Australia’s energy demand – a first in Australia and for any major jurisdiction globally. In this […]

To the left, to the left; is Liddell irreplaceable through the day?

In Issue 52, considering the recent announcement from the federal government to build a 250MW (previously 1GW) gas-fired plant in New South Wales (NSW), we investigated price volatility trends in the state and the opportunities for storage to fill the impending energy gap when Liddell retires in 2023. In this chart of the week, we […]

Got your money; wind shaking up the merchant revenue order?

Ideal weather conditions for wind and solar across the NEM in recent weeks saw renewables hit new highs in the National Electricity Market (NEM). A recent update from the Australian Energy Market Operator (AEMO) indicated that around noon on the 20th of August, wind and solar contributed 11.7GW – 46.5% – of total energy for […]

Don’t let the sun go down on me: solar in the sunshine state

Previously, in Issue 45, we examined how wind and solar technologies are performing against (and impacting) the time-of-day price shape in New South Wales (NSW). In this Chart of the Week, we move further north to examine the situation in Queensland and the profound impact solar is beginning to have on the merchant market in […]

The wind and the sun: an old age quarrel… or friendship?

Last week, the Australian Energy Market Operator (AEMO) released the Q2 edition of its Quarterly Energy Dynamics (QED) report. A key finding in the report is the reduction in wholesale electricity prices seen last quarter. With government-supported Renewable Energy Zones (REZs) being proposed especially in New South Wales (NSW), what does this mean for renewable […]

You’ll have to share your cake: wind v gas in ‘epeak’ battle

Spot prices are back in the headlines with increased renewable generation impacting both long term price trends as well as driving intraday value shifts; especially across mainland regions. With significant renewable generation still to come to replace exiting coal as covered in Issue 39, the key question then becomes: how much value is there in […]

Now speed up, gas pedal, gas pedal: faster transition for NSW?

Last month, the NSW government issued a call to renewable developers to respond to a Registration of Interest to develop a pilot Renewable Energy Zone (REZ) in the Central-West region of the state. This REZ – with an estimated worth of $4.4 billion in private investments – is expected to unlock 3GW of new renewable […]

Correlation does not imply causation: the story of GPG demand

“Gone are the days of $4/GJ gas”. This is a phrase that many following the Australian energy markets have heard numerous times and believed to be true since the advent of the Liquified Natural Gas (LNG) industry in Queensland. For years, this phrase held true with the gas spot price in Victoria (a key producing […]

Things are not what they seem: capturing intraday price volatility

The Australian Energy Market Operator’s (AEMO’s) recently released Quarterly Energy Dynamics (QED) report for Q1 2020 stated that average spot electricity prices in the National Electricity Market (NEM) fell to their lowest levels in 4 years ($66/MWh) last quarter. Victoria, in particular, witnessed a significant drop – 48% – from Q1 2019 average price despite […]