Electric feel: Can Victoria stay warm without natural gas?

Victorian Government is currently consulting with community and industry on the Gas Substitution Roadmap, just one piece of a broader effort to meet emissions targets. It outlines several options for reducing emissions from natural gas, including gradual substitution with biomethane, hydrogen, or electricity. In this ‘Chart of the week’, we consider the implications for Victoria’s […]

AEMO’s 2025 goal means that SA becomes the proving grounds

The latest news in the National Electricity Market (NEM) is AEMO’s goal to be capable of handling periods of 100% instantaneous renewables penetration by 2025. This is a significant challenge and fitting given the pace the NEM is moving to, supporting increasingly higher levels of instantaneous (and increasingly asynchronous) renewables on a regular basis. While […]

Examining Victoria’s recent wind drought

This ‘Chart of the week’ examines the recent spell of low wind generation in Victoria and associated elevated prices. Previously, ‘Chart of the week’ issue 78 highlights the risk of wind droughts within the National Electricity Market (NEM) due to the high correlation of wind fronts both within states and in neighbouring jurisdictions. Victoria is […]

Two roller coaster rides for the price of one? Preliminary vs final MLFs

In recent years, movements in marginal loss factors (MLFs) have received significant attention in the National Electricity Market (NEM). Many renewable projects in remote areas have experienced material MLF reductions as more supply connects nearby. For example, the MLF for Broken Hill Solar Farm saw a whopping 50 ppt drop in two years (from 1.2456 […]

VRE pays more as PFR helps reduce coal FCAS costs

In our previous ‘Chart of the week’ in November 2020, we reviewed the increasing percentage of causer pays cost that solar generators bear due to their generation profiles and how this results in them paying significantly more of the causer pays cost as a ratio of the generation they provide. More than six months on, […]

3 2 1… fight: VRE and price cannibalisation in NEM

In the last decade, the rapid decline in deployment cost of variable renewable energy (VRE) generation capacity has given renewables an advantage over fossil fuels for new builds as highlighted in ‘Renewable Power Generation Costs in 2020’ report from the International Renewable Energy Agency (IRENA). In the report, Australia has seen large falls in ‘Levelised […]

Peak raise regulation FCAS volumes drop by 72MWs

It is helpful to understand Frequency Control Ancillary Services (FCAS) as FCAS price forecasts are needed to estimate generator and customer costs, as well as possible revenues for new and existing ancillary service providers. AEMO procures regulation FCAS to balance frequency during normal operation. From May 2019, AEMO has procured a base of 220/210MW in […]

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 […]

If I should stay, I’ll only be in your way: coal and the transition

Events in Queensland on 25 May 2021 tested the resilience of the Queensland demand/supply balance with 3GW of coal generation suddenly coming offline due to a loss of generation at the Callide power station. According to AEMO’s preliminary report – released on 1 June 2021 – on the event, the outage also led to a […]

A view of captured prices by technology in New South Wales

This Chart of the week examines the historical captured prices of selected technologies within NSW for the last 10 years. Figure 1 shows the historical rolling monthly average of captured prices of various technologies within New South Wales against the monthly generation of variable renewable resources including small scale rooftop. Prior to 2016, in the […]