Edge presents at the GEA 2018 National Forum on the Gold Coast

Edge has been invited to present at the Gas Energy Australia 2018 National Forum, which is being held over the next two days on the Gold Coast. The forum seeks to provide important insights and new learnings across a range of industry relevant issues including policy, innovation, supply and security of Gas within Australia.

Gas Energy Australia is the national peak body which represents the bulk of the downstream gaseous fuels industry which covers Liquefied Petroleum Gas (LPG), Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG).  The industry comprises major companies and small to medium businesses in the gaseous fuels supply chain – refiners and supplies, fuel marketers, vehicle and equipment manufacturers, vehicle converters, consultants and other providers of services to the industry.

Thomas Dargue, our Manager of Markets and Advisory, will be presenting on innovative distributed energy solutions and gaseous fuels highlighting some of the opportunities that the change in the National Electricity Market could bring to gas producers.

If you would like to know more about Australian gas or discuss what changes are on the horizon in the gas market both short and longer term, please contact Edge on 07 3905 9220 or 1800 334 336.

Federal Opposition commits to 50% renewable by 2030

Penny Wong, Labor’s foreign affairs spokeswoman has told an emissions summit today that if elected, Labor’s emission target would be a 45% reduction on 2005 levels. The current target under the Coalition is 26% on 2005 levels.

Labor has also committed to a target of 50% of energy to be renewable by 2030. Currently, the Coalition is committed to 23.5% by 2020 through the RET scheme. Senator Wong advised that whilst her party has reservations on the National Energy Guarantee they would build on the Guarantee if possible rather than replace it.

The comments from Senator Wong carry significant weight as the potentially large increase in the renewable energy target will require further investment. At this stage, the next federal election is expected to occur in 2019. Technically an election will not have to take place until November 2019 however norm dictate that it is held with the senate election which must be held no later than 18 May 2019.

Edge note that the current renewable generation target only captures renewables constructed after 2001 and therefore does not include Snowy Hydro. From the comments today it is unclear if the Labor party plan to use the same basis for measurement.

If you would like to speak with an energy expert regarding your electricity portfolio, please contact Edge on (07) 3905 9220 or 1800 334 336.

New Firming Product released to market

As more and more large energy consumers look to contract directly with renewable generators, and renewable generators seek price certainty, a new product referred to as the “clean energy derivative” has hit the market.

In the last few weeks, AGL and ERM have released a somewhat standardised product which is built on generation from a renewable source and then “firmed”. AGL’s  “Wind Product Firming Unit” was described as being firmed through physical gas generation whilst also allowing the renewable generator to access the spot market (available in SA and VIC). ERM announced a similar product which is based on generation from solar. These are great initiatives from the retailers who are working to create liquidity in a new market, though keep in mind that there must be profit there for them as well.

Last year Clean Energy Derivatives Corporation featured in the AFR indicating that they would be raising $250m to develop CFD products bundled with generation from wind, solar, battery and storage. Little has been heard since regarding the capital raise or any successful deals.

There are existing generators, such as Snowy Hydro who are in a good position to provide ‘clean energy derivatives’.  However, there hasn’t been any news of Snowy partnering with a renewable generator to provide a firmed product as yet. Unsurprisingly, providing a firmed product would potentially cannibalise potential future earnings for Snowy Hydro. The absence of Snowy in this market could be a result of the change to a five minute settlement market. Fast start technology such as batteries will be one of the few technologies that will be able to capture (mitigate) spikes in spot prices within a 5 minute period, assuming that they are not part of central dispatch.

This product is still in infancy stage, however with strong interest from buyers and sellers we anticipate that it will develop quickly. Tradition Financial Services are soon launching a new wholesale “Renewable Energy Hub” which is described as a platform to firm, standardise and transact between wholesale renewables and energy buyers.

If you would like to understand Clean Energy Derivatives in more detail, please contact Edge on (07) 3905 9220 or 1800 334 336.

Tesla and SA Government plan to build a 250 MW “virtual power plant”

The South Australian Premier, Jay Wetherill has announced that a deal has been made with Tesla to install 50,000 rooftop solar PV systems and Tesla batteries on homes in South Australia. The total capacity of the solar PV is expected to be around 250 MW or the size of a small power station.

The first 1,000 systems are already under way, being built by Housing Trust which is the South Australian Government’s low-cost housing arm. If successful, a further 24,000 government households will have the system installed, before being opened to private participation.

The details of the deal between the South Australian Government and Tesla is not known. Specifically, any success criteria to the first 1,000 installations and any cancellation clauses have not been disclosed. Cancellation clauses are particularly relevant given South Australia is facing an election on 17 March 2018.  Prime Minister, Malcolm Turnbull, has warned against further experiments in the state’s electricity grid indicating that the Liberal party was unlikely to be supportive of a battery trial.

It is conceivable that a combination of batteries and solar PV may help to stabilise the local grid. The announcement by Mr Wetherill indicated that they would be looking for a retailer to manage the batteries. With a high correlation between low system security and low energy prices, retailers may have interest to dispatch the batteries when the energy prices are high, thereby mitigating their costs. Given the solar and battery system installations will be relatively small, they will not form part of central dispatch.  This means that they cannot be relied upon by the Australian Energy Market Operator (AEMO) for system security.  Control could be given to the distribution provider, who would be responsible for the low-voltage network instead of the retailer..  The distribution provider may want to dispatch the batteries at times of low prices to suit the network. This would reduce the revenue gained which would effectively make the pay back period on the batteries longer.

There is no doubt that the large battery installed by Tesla in South Australia has been a great publicity stunt for both the government and Tesla, however it would be interesting to understand which companies were invited to bid for the work and the selection criteria.  There are a large number of Australian companies waiting to launch battery products at a large scale. Edge has previously reported on Planet Ark Power looking to reduce prices at Llewellyn Motors. Closer to Jay Wetherill’s home is Zen Energy and there are many other Australian companies wanting a chance to bid for a contract of this nature.

If you would like to know more about renewable energy projects and how they could assist with reducing your energy costs, please contact Edge on (07) 3232 1115 or 1800 334 336.

Solar Reserve receives approval for SA concentrated solar thermal plant

The Port Augusta located, concentrated solar thermal plant has reached a significant, yet not surprising, milestone in achieving development approval for the plant. The Aurora plant will have 150 MW of capacity and 8 hours of storage.

The development approval suggests that the $110 million concessional loan from the Federal Government is all but secured. It is understood that the funding was allocated in the May 2017 Federal budget and to be administered through ARENA.

The plant is scheduled to deliver 100% of its output to the SA Government under a long term agreement beginning in 2020.

Further information can be found on our previous article https://edge2020.com.au/edge-news/150-mw-solar-thermal-plant-constructed-south-australia/

If you would like to know more about renewable energy projects and how they could assist with reducing your energy costs, please contact Edge on (07) 3232 1115 or 1800 334 336.

Victorian Government announces Renewable Energy Action Plan

The Victorian Government has announced its Renewable Energy Action Plan. The Plan reconfirms its commitment to meeting its renewable energy targets of 25 per cent by 2020 and 40 per cent by 2025.  There will be a second round of renewable certificate purchasing to encourage up to 75 MW of largescale solar, of which 35 MW will be used to power Melbourne’s trams. Other initiatives such as battery storage, energy efficiency and solar panels will be supported through cooperation with the Clean Energy Finance Council (CEFC), and the $300 million raised through the Government issuing Green Bonds.

To read all the actions that the Victorian Government has committed to, go to https://www.energy.vic.gov.au/about-energy/victorias-renewable-energy-action-plan