New Entrants in the Electricity Market and Echoes of Past Insolvencies

In August, AEMO reported an influx of new participants into the electricity retail market, with Tesla Energy Ventures Australia Pty Ltd leading the spotlight. Though Tesla has already marked its presence in the energy sectors internationally, its aggressive expansion in Australia is notable.

But here’s the catch – Tesla isn’t the only one. Since 2020, the AER has clocked in 22 new electricity retail licence applications. Names like Ampol Energy, Smartest, and Telstra join the race.

For SMEs, this means more options and potentially competitive rates. But there’s a flip side: competition doesn’t always translate to stability. The UK’s energy sector is a case in point. They’ve witnessed the collapse of over 27 energy suppliers since January 2021. Many of these were pegged as “low cost”, but their limited risk management strategies impacted the entire market, causing disruption and affecting consumer trust.

The concern for SMEs is genuine. If you partner with a new energy supplier, where does the buck stop if things go south? The ongoing debate around the ‘Retailer of Last Resort’ scheme means businesses could bear the brunt of market failures, even if they haven’t directly partnered with failing companies.

Looking ahead, Australia’s energy landscape will be tested. We are expected to have significant volatility this summer, with potential power shortages in Victoria and South Australia. Climatic factors such as El Niño and the increase in demand that puts pressure on the National Electricity Market (NEM) contribute to predicting this volatility.

As we navigate this electrically charged journey, these emerging retailers are still finding their footing in the vast expanse of the market. The coming summer promises to shine a light on the resilience and adaptability of these newcomers. It’s a defining moment that could guide the course of regulatory adaptation and industry evolution. Yet, as with all dynamic sectors, the future remains unwritten.

This is a summary article from Edge2020 – read the original article.

Save Big on Energy with Edge Utilities! We’re your experts in tapping into the strength of bulk purchasing, aiming to significantly cut down your energy costs without any added expense to your business. Committed to assisting SMEs, we’re here to source the best rates for you. Reach out to us at save@edgeutilities.com.au or give us a ring at 1800 334 336. Let’s start your journey to effortless savings!

Negotiations Stumble at Chevron: Unions Strike and European Gas Prices Climb

Talks have stalled at Chevron, leading unions to launch a series of strikes over the next three weeks. This has already made gas prices in Europe jump. Two of Chevron’s key plants, Wheatstone and Gorgon, play a significant role in providing gas globally and to Western Australia. These strikes will go on for 10 hours each day, eventually ramping up to all-day strikes.

Prices for gas in Europe saw a sharp rise just after the market opened due to these strikes. Even though there’s a lot of stored gas in Europe right now, this situation could change if the strikes continue. Before these strikes began, Chevron and the unions tried to find common ground for five days, but didn’t succeed. The union felt that Chevron was asking for too much.

Experts say that while the strikes will increase costs for Chevron, they won’t drastically reduce the amount of gas produced. Yet, if the strikes get more intense, the situation might change.

Chevron mentioned that they’ve tried their best to make fair offers to end this standoff. They expressed disappointment that the unions want terms that are higher than what the market usually offers. Despite this, Chevron aims to find a solution that’s fair for everyone.

Edge2020 thinks that these strikes won’t heavily affect Australia’s gas supply. They believe it’s unlikely that Chevron will shut down both plants entirely because it could lead to major energy problems in Western Australia, and the government would likely step in.

This is a summary article from Edge2020 – read the original article.

Save Big on Energy with Edge Utilities! We’re your experts in tapping into the strength of bulk purchasing, aiming to significantly cut down your energy costs without any added expense to your business. Committed to assisting SMEs, we’re here to source the best rates for you. Reach out to us at save@edgeutilities.com.au or give us a ring at 1800 334 336. Let’s start your journey to effortless savings!

Bracing for El Niño: Challenges and Opportunities for Australia’s Power Grid

Australia’s electricity system, particularly in Victoria and South Australia, prepares for potential disruptions this summer. This is largely due to the anticipated El Niño weather pattern, which brings with it extreme heat and calm, windless days. The Australian Energy Market Operator (AEMO) has released an urgent warning regarding the risks associated with the slow transition from coal to cleaner energy sources. Coupled with potential shortages in coal and gas, there’s an increased likelihood of blackouts. AEMO’s recent projections highlight the critical need for investments, especially with nearly two-thirds of the nation’s coal power plants slated for closure by 2033.

The journey towards a greener energy sector is fraught with challenges. Key among them is the planned 2025 closure of the Eraring coal generator in NSW. AEMO suggests reconsidering such drastic steps to avoid potential power interruptions. Gas plant shutdowns also pose a challenge. There’s a plan to introduce about 3.4GW of new power generation and storage by this summer. Projects such as Snowy 2.0 in NSW promise to fortify the power grid by 2032-33, but concerns over delays and cost overruns persist.

With El Niño returning after three relatively mild La Niña summers, the grid faces further strain. This is exacerbated by the increasing popularity of electric vehicles and a shift towards electric heating, especially in areas like Victoria. However, Sarah McNamara of the Australian Energy Council remains optimistic. She believes Australia can navigate these challenges effectively with appropriate strategies and market-driven investments.

This is a summary article from Edge2020 – read the original article.

Save Big on Energy with Edge Utilities! We’re your experts in tapping into the strength of bulk purchasing, aiming to significantly cut down your energy costs without any added expense to your business. Committed to assisting SMEs, we’re here to source the best rates for you. Reach out to us at save@edgeutilities.com.au or give us a ring at 1800 334 336. Let’s start your journey to effortless savings!

And the Most Shocking News of 2023 Goes to…

Forget about scary books, the real fright this year is a report about Australia’s electricity supply, and it’s coming out this week.

In Western Australia this week, a report from the Australian Energy Market Operator (AEMO) showed that the government’s plan to stop using coal by 2030 would cause electricity shortages. The WA government, realizing the problem, quickly announced that the Muja 6 power plant would continue to operate until at least April 2025. This is because WA is planning to remove a large amount of electricity from the system by 2030, and the report shows there will be significant shortages by 2026 and even more by 2033. So, the conversation in the state is now about how to manage the change rather than how to achieve the targets.

In the National Electricity Market (NEM), even before this report was released, there were already announcements in Victoria and expected news from New South Wales. The question is no longer whether Australia will achieve its goal of net-zero emissions, but by how much we will miss it and what impact will the closures of coal plants have before we can replace them with renewable energy?

The Victoria government has made a deal with energy company AGL to keep the Loy Yang power plant running until 2035. Despite some objections, it is clear that the switch to renewables is not happening quickly enough to smoothly move away from coal.

Following this, Energy Australia announced that the Yallourn power plant will close in 2028, but the Point Piper plant will remain available until 2040.

Adding to this, the NSW government has hinted that the Eraring plant will stay open, raising questions about what form it will take and at what cost.

With the uptake of renewable energy in Australia at one of its lowest levels in years, held back by large subsidies in the US and high demand in Europe, opposition to upgrades of the electricity network, especially in rural areas, and uncertainty about policies after 2030, this week’s report will undoubtedly be alarming.

As the COP28 conference approaches in November, there will likely be debates in Canberra about who will attend, as the report will undoubtedly put Australia back in the spotlight for not meeting its targets.

So, the question is not whether we will miss our targets for changing our energy supply and reducing our impact on the climate, but by how much?

This is a summary article from Edge2020 – read the original article.

Save Big on Energy with Edge Utilities! We’re your experts in tapping into the strength of bulk purchasing, aiming to significantly cut down your energy costs without any added expense to your business. Committed to assisting SMEs, we’re here to source the best rates for you. Reach out to us at save@edgeutilities.com.au or give us a ring at 1800 334 336. Let’s start your journey to effortless savings!

Australia’s Energy Crossroads: The Debate Over Nuclear Power

Australia’s ban on nuclear power, in place since the late 1990s, has recently come into the limelight. With warnings about rising power costs, some government members argue that considering nuclear energy is necessary for the country’s energy stability and economic future.

While some senators push for an evaluation of nuclear energy proposals, the central leadership remains hesitant. They cite concerns, including the financial implications of nuclear power when compared to renewables, questions surrounding the reliability of newer nuclear technologies, and the extended timeline required to establish nuclear plants, which may not align with the country’s renewable energy targets.

Public opinion on nuclear energy remains divided. The debate is further complicated by Australia’s recent ventures into nuclear-based defence initiatives, leading some to ask: if nuclear can be trusted for defence, why not for energy?

As discussions continue, the country finds itself at an energy policy crossroads. The outcome could shape Australia’s energy landscape for decades, emphasizing the need for informed decision-making that balances technology, policy, and public opinion.

This is a summary article from Edge2020 – read the original article.

Save Big on Energy with Edge Utilities! We’re your experts in tapping into the strength of bulk purchasing, aiming to significantly cut down your energy costs without any added expense to your business. Committed to assisting SMEs, we’re here to source the best rates for you.

Eager to see a noticeable difference in your energy bills? Reach out to us at save@edgeutilities.com.au or give us a ring at 1800 334 336. Let’s start your journey to effortless savings!

Flying towards a cleaner future: Ecotricity’s electric airline using Hydrogen Electricity

Edge Utilities_Hydrogen Electricity

The UK is about to welcome the first electric airline using Hydrogen Electricity in the world!

Ecotricity’s green energy business is launching a plane with 19 seats that will fly between Southampton and Edinburgh. According to the company’s chief, the aircraft will initially run on kerosene-based fuel but will transition to hydrogen-electric engines a year from now.

What is the purpose of hydrogen electricity? Imagine it as a lunchbox full of sandwiches, only the sandwiches are hydrogen gas, and the lunchbox is a fuel cell. Instead of eating the sandwich as humans do, the fuel cell converts the hydrogen into electricity, supplying power to the plane’s engines.

This concept has an infinite number of possibilities. It may be a significant step in reducing aircraft emissions, which are very significant, especially for countries like Australia where transport, including air travel, contributes significantly to greenhouse gas emissions.

Other sectors are also embracing the hydrogen trend. Hydrogen service stations are planned for Australia, while a boat powered by hydrogen has been launched in China. Therefore, it is evident that the hydrogen era is not only a theory but is becoming a reality.

This is a summary article from Edge2020 – read the original article.

The team Edge Utilities are passionate about renewables and sustainability, we are energy brokers with an eye on the planet. We are committed to helping councils and business communities reach their net zero goals through renewable power purchasing agreements (PPAs) and smart portfolio management.
To discuss options and plans for your community contact us at save@edgeutilities.com.au  or call us on 1800 334 336 to discuss. 

Breaking Down the New Climate-Related Financial Disclosures: A Simple Guide

Edge Utilities_Climate-Related Financial Disclosures

The way businesses approach climate change is becoming increasingly important, and new Climate-Related Financial Disclosures are being created to guide this. This process gained momentum in 2021 with the formation of a group called the International Sustainability Standards Board (ISSB).

The ISSB dedicated 18 months to consulting with different industries, aiming to formulate a comprehensive guideline that encourages companies to be more transparent about their sustainability efforts. In June, they introduced a set of guidelines called the IFRS Global Sustainability Standards, designed to instill confidence in the information companies share regarding their sustainable practices.

Following this, the government has drafted a paper that outlines expectations for large companies. These companies will be required to report on their plans, risks, and opportunities related to climate change. The reporting must align with international standards and show the companies’ readiness to achieve the objectives of the Climate Change Act 2022.

The implementation of these rules begins on July 1, 2024. Initially, they will apply to Australia’s biggest companies, as defined by their revenue, asset value, and employee count. However, by 2027, companies categorised as “Controlling Corporations” under NGERS may also have to comply, even if they don’t meet the initial criteria.

Companies will be mandated to disclose various information, including data on their emissions, plans to meet climate targets, and strategies to handle any climate-related risks. Non-compliance could lead to significant penalties.

While the government is soliciting feedback on these rules until July 21, 2023, it’s clear they’re set to become a permanent fixture. By the next financial year, many businesses will be required to adhere to these rules, and there will be no option to opt out. It’s crucial for businesses to start preparing now to be ready when the final version of the rules is officially enacted.

This is a summary article from Edge2020 – read the original article.

The team Edge Utilities are passionate about renewables and sustainability, we are energy brokers with an eye on the planet. We are committed to helping councils and business communities reach their net zero goals through renewable power purchasing agreements (PPAs) and smart portfolio management.
To discuss options and plans for your community contact us at save@edgeutilities.com.au  or call us on 1800 334 336 to discuss. 

Renewable Revolution or Risky Gamble? Australia’s Bold Energy Transition Plan

Edge Utilities_Energy Transition Plan

The Australian Federal Government, led by Chris Bowen, has announced a bold move to support renewable energy, the energy transition plan will add an extra 550 megawatts (MW) of firming generation in New South Wales (NSW). This strategy aims to ensure grid reliability and security and attract nearly AUD 10 billion in investment, thereby contributing to an estimated 6 gigawatts (GW) of additional power. The energy transition plan is designed to offset the projected power shortages following the anticipated shutdown of various fossil fuel generators across the National Electricity Market (NEM).

Despite the optimism, there are challenges. It remains uncertain whether the proposed measures, largely based on large-scale battery and pumped hydro storage, can compensate for the power shortage following the phasing out of fossil fuel generators. Further concerns have been raised following the delays to the Snowy 2.0 project, with doubts about the NEM’s ability to maintain a stable electricity supply and prevent a spike in power prices. The reliability of renewable energy during periods of calm weather and low sunshine is also under scrutiny.

These uncertainties lead to an important question: will this ambitious plan become a successful blueprint for the future, or a cautionary tale of overambitious planning and under-delivery? The outcomes will have significant implications for the future of renewable energy, not just in Australia, but globally. As Australia embarks on this renewable energy journey, the world watches closely.

This is a summary article from Edge2020 – read the original article.

The team Edge Utilities are passionate about renewables and sustainability, we are energy brokers with an eye on the planet. We are committed to helping councils and business communities reach their net zero goals through renewable power purchasing agreements (PPAs) and smart portfolio management.
To discuss options and plans for your community contact us at save@edgeutilities.com.au  or call us on 1800 334 336 to discuss. 

Is It Time for Australia to Bring Renewable Energy Manufacturing Home?

Edge Utilities_Renewable Energy_Wind Turbines

Australia’s renewable energy sector is facing a litany of challenges, with a number of recent wind project delays marking just the tip of the iceberg. The halt in investment for the Karara Wind Farm, due to delays in turbine parts and escalating costs, highlights a broader problem. Queensland’s ambitions of generating 50 per cent of new renewable energy within the state now hang in the balance, a setback that underlines the pressing need for an overhaul in our approach to green energy.

As the Conference of Parties (COP 28) approaches in November, and with Australia seemingly off-course to meet its 2030 climate targets, international pressure is increasing. Engie Australia’s CEO, Rik De Buyserie, suggests that to even approach the 2030 climate targets, Australia would need 10,000km of new transmission, 44GW of new renewables, and 15GW of firming capacity.

Key figures in the industry, such as Markus Brokhof, COO of AGL, and De Buyserie have been vocal about the urgency of the situation. They argue that the current investment in renewable electricity is woefully inadequate to compensate for the looming closure of coal generation. Brokhof posits that it might be time for Australia to not just invest more, but to also bring the manufacturing of renewable energy components home.

The notion of upskilling our workforce and developing our own green manufacturing industry is a compelling one. With the logistical challenges of imports, scarcity of components, and rising costs, it may be the most feasible path towards our 2030 climate targets. Thus, echoing the sentiment of the famous 1996 football anthem, it might indeed be time to bring renewable energy ‘home’, transitioning Australia towards a self-reliant, green energy future.

This is a summary article from Edge2020 – read the original article.

The team Edge Utilities are passionate about renewables and sustainability, we are energy brokers with an eye on the planet. We are committed to helping councils and business communities reach their net zero goals through renewable power purchasing agreements (PPAs) and smart portfolio management.
To discuss options and plans for your community contact us at save@edgeutilities.com.au  or call us on 1800 334 336 to discuss. 

Energy insights for SMEs – Australia’s energy transition

Small to medium-sized businesses (SMEs) in Australia, prepare for subtle yet significant changes in the energy sector that might impact your operational costs and sustainability efforts.

Firstly, good news for the near future as the revival of the Tallawarra B gas station is expected to ease the energy supply deficit by late 2024. However, potential delays in the commissioning of the Kurri-Kurri gas plant highlight the need for SMEs to explore diverse energy sources and contingency plans.

By 2025, the closure of Eraring, which contributes ~25% to the New South Wales’ (NSW) energy grid, could potentially escalate energy bills by increasing spot prices across the National Electricity Market (NEM). Further, potential delays in the ambitious Snowy 2.0 hydroelectric project could also contribute to energy contract price increases. These shifts underscore the significance of energy efficiency and renewable alternatives for SMEs.

Policy changes are also on the horizon with the possible introduction of a capacity mechanism, which could influence how you source your electricity, adding more stability and affordability.

For SMEs operating in South Australia and Victoria, the government’s new scheme promoting non-fossil fuel generation could have substantial implications for your energy sourcing and costs.

The growth of large-scale battery projects in South Australia and Victoria’s goal for a 95% renewable grid by 2035 presents intriguing opportunities. This transition could stimulate additional renewable initiatives, providing compelling prospects for SMEs in the renewable sector.

In summary, while the forthcoming Electricity Statement of Opportunities (ESOO) might bring some challenges, it also unveils opportunities for innovation. By staying informed and adaptable, your business can flourish in Australia’s transforming energy landscape. Keep an eye out for further legislative changes coming this September.

Edge Utilities offer market leading services for business and strata energy users. We help you navigate the ever-changing energy landscape, focus on renewables and save on your power bills through our Edge Utilities Power Portfolio. Reach out, we would love to assist you: info@edge2020.com.au or call on:1800 334 336