Energy Spectrum Australia

Energy Spectrum Australia | Issue 1

Welcome to the first edition of Energy Spectrum Australia.

September has seen the energy sector undergo significant change which will seek to deliver greater opportunities for market entrants, boost competition and see Australia attract investment to meet ongoing demands in generation and supply.

In this month’s Energy Perspective, Principal Consultant Ben Cerini examines the Australian Energy Market Operator’s (AEMO’s) Electricity Statement of Opportunities (ESOO), its projected impact on summer energy adequacy and whether the mechanisms being used are fit for purpose.

Our Policy section looks at the Energy Security Board’s project to develop a new market framework in which to meet future generation and supply. We explore the AEMO’s new 2019-20 Integrated System Plan scenarios, as well as the Australian Energy Regulator’s (AER) Affordability in retail energy markets report which showcases energy affordability from 2017 to 2019 in the National Electricity Market

(NEM). We also detail how the Australian government is introducing new laws allowing it to break up energy companies that raise electricity prices and partake in anti-competitive conduct.

In our Regulation section, we take a closer look at the Australian Energy Market Commission (AEMC) report on delivering “the grid of the future,” as well as AEMC’s decision to approve amendments to the National Electricity Rules (NER) to improve wholesale market operations. We also assess AEMO’s ERC0280 Integrating Energy Storage Systems into the NEM proposal, on top of AEMC’s consultation paper proposing to alter the NER for the provision of mandatory primary frequency response in the NEM.

In our Industry Structure section, we explore how the Victorian gas transmission network has broken a 12-year peak gas demand record. Additionally, Royal Dutch Shell has entered Australia’s power sector with its $617mn takeover bid for the acquisition of commercial and industrial energy retailer ERM Power. We have also included the most recent developments throughout the month to date, showcasing how the industry is continuing to move towards increased transparency and changes which are increasingly consumer driven.