Energy is neither created nor destroyed; it just transitions

In April, the NSW government opened consultations on “specific urgent and mechanical policy details” on regulations needed to implement its Electricity Infrastructure Roadmap released late last year. The Roadmap aims to unlock 12GW of new renewable energy capacity from selected Renewable Energy Zones (REZs) with an additional 2GW in storage by 2030. In our Chart […]

Resizing the bumper car (market price) floor?

The next two years will be exciting for NEM regulatory aficionados (pronounced “nerds”) as the reliability standard and settings are up for review. The reliability settings, including the market price cap (MPC) and floor (MPF) have not been changed for more than a decade. While the MPC is indexed to CPI, the MPF has stayed […]

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 […]

Supply creates its own demand: negative pricing in the NEM

In the National Electricity Market (NEM), generators offer the prices at which they are willing to supply electricity to the system operator – the Australian Energy Market Operator (AEMO) – who in turn matches these offers with demand on a least-cost merit order basis. The offer price of the last MW of supply that matches […]

NEM wind generation: Do birds of a feather flock together?

With a growing expectation that coal plants will face early retirement, this week’s ‘Chart of the week’ examines the correlation between different wind patterns in the various identified Renewable Energy Zones in the NEM. Figure 1 illustrates the correlation between the FY2019 AEMO generated high wind renewable energy zones for the various zones (captured on […]

Hydrogen plants could profit in South Australia

The South Australian Labor party has committed to building a hydrogen production, storage and electricity generation facility if elected at the next SA State election. Their proposal includes a $220 million 250 MWe electrolyser, $31 million for 3,600 tonnes of liquefied hydrogen storage and $342 million for a 200MW CCGT power station. Their plan highlights […]

Hungry ducks – Can we flatten the belly of the ducks?

Rooftop solar installations have continued record growth in 2020, as reported by Clean Energy Regulator (CER) in its latest December Quarterly Carbon Market Reports. In the report, 3GW of rooftop solar capacity was installed in 2020, which is a year-on-year increase of 40%. This brings the total rooftop solar capacity to 13 GW by the […]

Round and Round the Market: Black Coal vs Batteries

This year appears to be the year of the battery, with the volume of projects that have been announced or in some stage of planning approaching the 10GW mark it is worth taking a look at how batteries are performing in the FCAS markets over the last two years. Currently FCAS revenues make up somewhere […]

When less could be more – on the states’ green targets

With the NSW government’s announcement of its Electricity Infrastructure Roadmap, all NEM states have committed to a headlong charge towards their respective renewable targets by 2030. Just a quick recap: Victoria and Queensland have committed to a 50% renewable generation target (incl. grid and distributed). Tasmania will produce 150% green energy relative to its demand […]

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, […]