Unpacking the Impact of AEMO’s Scheduling Error Post Liddell Shutdown: A Peek into the Energy Market Dynamics

Light Bulb - Electricity

The Australian Energy Market Operator (AEMO) recently confirmed a scheduling error involving the Liddell Power Station, which led to considerable disruptions in the National Electricity Market (NEM) and the futures market on May 1, 2023. The closures of the last three units of the Liddell Power Station towards the end of April should have been integrated into the AEO dispatch system. However, a data mismatch within the system kept these units active, leading to market inconsistencies.

This oversight originated from a disparity within the NEM Dispatch Engine (NEMDE) utilized by AEMO. While a portion of the system correctly acknowledged the shutdown of the Liddell units, another part, responsible for handling constraints, continued to count them at their initial 500MW capacity rather than the actual zero. The resultant 1500MW drop in capacity from the system’s balancing equation led to adjustments in the power distribution across states.

To rectify this situation, AEMO reduced power flow from Victoria to New South Wales and moderated power generation by approximately 173MW. The resulting market response was a surge in electricity prices, pushing the daily average price up by around 30%.

In the aftermath of the Liddell shutdown, the market has been on high alert, responding to the smallest of disturbances. This sensitivity was evident as the futures market reacted positively, experiencing a rise in the Q3 2023 close price across QLD, VIC, and NSW, and a notable increase in SA.

In the following weeks, the power market continued to be volatile due to various outages and unexpected factors such as a tube leak at Bayswater 2, outages at Kogan Creek, Eraring 2, and Tarong, the delay of Callide’s return, and unexpected interest rate hikes. This scenario led traders to act on the price differences between states, resulting in a rise in NEM prices. It is suggested that this sensitivity and rapid reaction of the market is likely to continue for some time. Despite the quick adjustments in the spot market, the futures market appears to be retaining its value.

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. 

“Rewiring the Nation” project to invest $20 billion

Gala sitting on electrical wire

Australia is undertaking a significant “Rewiring the Nation” project to invest $20 billion to transform its energy sector. Spearheaded by Chris Bowen, the initiative focuses on developing and constructing 10,000 kilometres of transmission lines by 2030. Bowen stresses the importance of obtaining social acceptance for this transition. To that end, New South Wales (NSW) and Victoria (VIC) governments offer landowners affected by the infrastructure projects generous incentives of $200,000 per kilometre. These measures aim to establish strong stakeholder relationships in the regulatory investment test process.

To meet its ambitious renewable energy targets, Australia requires roughly 29GW of large-scale renewables, equivalent to installing about 3.6GW annually. However, the country only added 2.3GW of large-scale solar and wind capacity in the previous year, and progress in developing essential transmission lines has been slow, posing a significant challenge to achieving these goals. AEMO‘s Chief Executive, Daniel Westerman, highlights that the curtailment of solar and wind generation is due to inadequate transmission capacity. Though renewable energy integration is at record highs, with an average of 37% and a peak of 66% in the grid during Q1, the closure of 14GW of coal-powered generation capacity by 2030 surpasses the 8GW of announced renewable projects.

The government plans to address these concerns by introducing a new Capacity scheme and examining potential extensions to existing infrastructure. In addition, as the VIC-NSW West Interconnector’s final drafts and Humelink’s approval are expected, the transition to new transmission systems is underway. There are still questions, however, over whether the government will be able to reach its renewable energy goals in the allotted time. Further updates will provide information on the advancement and difficulties encountered along the road as Australia works to attain its clean energy ambitions. Australia’s energy environment is continually changing.

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. 

South West Renewable Energy Zone: A Step Towards a Greener Future in New South Wales

Street lights on road at night

The NSW government recently released their draft declaration for the South West Renewable Energy Zone (SW REZ) access scheme to the public as part of the NSW government’s Electricity Infrastructure Roadmap.

The government is paying particular attention to the number of projects that will be granted transmission in the zone looking to generate investment.

REZs are designed to coordinate the connection of new renewable energy projects to the electricity grid within a specific area. The NSW government hopes these zones will attract investment for renewable energy projects, thereby reducing greenhouse gas emissions and providing clean, sustainable energy.

The South West REZ is anticipated to have a transfer capacity of 2.5 gigawatts (GW) and will connect to the existing electricity network via the Dinawan Substation. Due to its location, this zone will primarily focus on solar and wind energy projects, as offshore wind and extensive hydrogen investment opportunities are not as viable.

Several upgrades to the electricity network are planned to support these new projects, including the Project Energy Connect (PEC) interconnector, the HumeLink, and the proposed Victoria-NSW interconnector (VNI West). These enhancements aim to entice investors to fund renewable energy projects in the South West REZ.

To participate in this REZ, companies must meet specific requirements and adhere to the government’s guidelines. They need to demonstrate project feasibility, compliance with certain standards, and the ability to manage potential disruptions to the electricity system. Upon meeting these criteria, they will be granted access to the REZ and the benefits it offers, such as a stable and well-funded electricity network.

Public consultation for the South West Renewable Energy Zone (SW REZ) access scheme will conclude on May 15th, marking another step towards a greener future in New South Wales.

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 energy storage roadmap released

Edge Utilities Brisbane City

The CSIRO’s Renewable Energy Storage Roadmap underlines the importance of energy storage in Australia’s journey to net zero emissions.

Despite leading in solar power generation and reducing emissions, Australia requires a significant increase in storage capacity to maintain affordable and reliable energy.

Storage is vital to integrating renewables into the grid and reducing coal and gas-fired generation dependency. A combination of various storage technologies, such as electrochemical, mechanical, chemical, and thermal storage, is needed to meet the evolving demands of the National Electricity Market (NEM).

Increasingly, dispatchable generation must come online as coal-fired generation retires between 2023 and 2035. The CSIRO report calls for accelerated development timelines for projects by 2030. Faster development or alternative storage technologies are needed, as pumped hydro typically takes ten years to develop.

CSIRO’s chief executive emphasises the need for a “massive increase” in storage capacity, estimating an additional 11 to 14 gigawatts by 2030. As a result, the focus should shift to storage as the deadline approaches, exploring repurposing old mine pits and retiring thermal power stations.

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. 

AEMO’s MLF assessment reveals solar and wind farms as big losers

Solar Panel

The Australian Energy Market Operator (AEMO) recently released its final Marginal Loss Factors (MLFs) assessment, highlighting solar and wind farms as the big losers. The MLFs determine how much energy is lost between the generator and the region reference node in each state, and the changes in the new MLF forecasts were primarily driven by changes in availability due to the closure of Liddell, revised return to service dates for Callide C, revised demand forecasts, and the increased penetration of solar and wind generation into the grid.

The lower MLFs impact the amount of revenue generators can make, and many of the intermittent generators have been impacted by changes to the grid and the closure of thermal generators. The location of renewable generation is becoming increasingly important for the success of a project, with unfavourable MLFs potentially reducing the revenue for generators and impacting the renewable energy available to the market.

While a 3% drop in solar farm generation may not seem significant, some solar farms in the New England region have experienced drops that are greater than this. These changes can affect the success of a project and reduce the renewable energy available to the market, potentially leaving end-users with less renewable energy than they signed up for. The final MLF assessment from AEMO underscores the importance of carefully considering the location of renewable energy projects for successful implementation and revenue generation.

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. 

Intergovernmental Panel on Climate Change Warning

plant in landscape suffering drought

The catastrophic impact caused by rising greenhouse gases

The Intergovernmental Panel on Climate Change (IPCC)’s 6th Assessment Report (AR6) has shocked the scientific world and beyond. More than 250 climate scientists worked on this eight-year assessment, which drew an alarming conclusion about the catastrophic impact caused by rising greenhouse gases.

The report highlights that we are already experiencing the effects of 1.1 degrees Celsius warming, including summer arctic ice coverage, ocean acidification, and rising carbon dioxide levels. Moreover, it discusses the irreversible effects that can occur at as low as a 1.5-degree overshoot, including species extinction and loss of life.

The UN’s Secretary-General, Antonio Guterres, has urged nations to abandon the 2050 net-zero target for stronger 2040 packs while calling for developed nations to phase out coal by 2030 and block new oil or gas extraction. This, he believes, could hold us at the 1.5-degree warming cap. The upcoming COP28 in the UAE in November and December will be a true test of the global commitment to tackling climate change. However, with the chair being the CEO of the 12th largest oil business, there are concerns about softening approaches.

The AR6 shows that we are close to the point of no return and that the impacts of climate change require immediate action.

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. 

 

Councils working towards net zero

Local council area business

Enabling green power purchasing for your business community

Enabling the purchase of green power through a portfolio arrangement can be a powerful tool to support councils in their commitments towards emission reduction.  Working with your business community to encourage  them to purchase their power responsibly through a collective effort is the answer to reaching your council’s net zero goals. But where do you start with the administration and negotiations for such an arrangement?

Connecting businesses to a portfolio to buy green energy is easier than you would think.

Energy procurement specialists like Edge Utilities are adept at using the power of bulk purchasing to help businesses achieve goals, such as ensuring they are buying green electricity, and it can also lead to savings in many cases. In addition to sourcing energy through sustainable suppliers, they will negotiate and contract on behalf of the businesses, and by having support from a consultant who can take an aggregated portfolio approach widens the opportunity for those businesses to define and meet their desired outcomes.

So how can this be rolled out across a council or community with thousands of businesses?

Using the council’s connection to all the businesses in an area and great communication you can work with a businesses like Edge Utilities to encourage business owners to purchase their power through the portfolio aggregation arrangement. This will enable the majority of the jurisdiction to be buying green power, with the joy of someone else managing the administration through a custom built portal, or in some cases with a little marketing budget a microsite, branded as a council initiative.

Each business will still have their own contracts and power bills, but by joining the portfolios to a large proposition, they can tap into the benefits of buying renewable energy and potential savings through bulk purchasing.

Why do it?

One word, emissions. Collectively the businesses in a council area would be responsible for a large percentage of the emissions in the area,  and due to government legislation, most councils will have committed to reducing those emissions.

Setting up the opportunity for businesses to make an easy transition to purchasing renewable power in your council area will certainly support emission reduction goals.

The benefits are:
  1. Emission Reduction: Encouraging renewable energy procurement for the businesses in that area, can enable councils to actively reduce their carbon emissions.
  2. Simplicity: Having expert energy providers manage it on your behalf allows businesses within your constituent access to an easy option to know they are buying green energy, as well as have the contractual admin managed by someone else.
  3. Education: Offering a service like this to the businesses in your council area through a specially designed portal, will give you the opportunity to educate your community on energy consumption.
  4. Potential cost savings: The more businesses that join the portfolio the more opportunity portfolio managers have to make potential savings on energy through bulk purchasing.
  5. Demonstrating Leadership: By providing an easy to use, admin free opportunity for local businesses to move to green power, councils can demonstrate their commitment to sustainability and set an example for other organisations to follow.

How to do it – The portfolio model

Energy partners like Edge Utilities  work with councils to help communicate with the businesses in the area and enable the switch to green through a customised portal, to sign up to join the portfolio. The actual contracts are held individually by each business, they will all receive their own bills.

There is no cost for the re-contracting service, much like mortgage brokers there is no out-of-pocket cost to the council or individual businesses for the use of our services. We are remunerated by the retailers we set up the contracts through, making it a win win situation for emission reduction goals, potential savings for the businesses and the opportunity for the Edge Utilities Power Portfolio (EUPP) to grow.

The council’s job therefore becomes purely engagement and education, notifying businesses that they have created the opportunity for a simple switch to contribute towards your net zero goals by joining the portfolio.

Overall, communities purchasing renewable energy through a power portfolio can provide a cost-effective and reliable way for councils and business communities to transition to net-zero emissions and contribute to a more sustainable future.

 

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. 

 

 

 

 

What shade of green is your business?

  • Do you use a re-usable bag when you shop?
  • Do you recycle at home and work?
  • Do you conserve water where you can?
  • Do you turn off you lights when they aren’t being used?
  • Do you try and avoid single use plastics?

These are choices we all naturally make every day, and all contribute towards a healthier planet. So, why would you not incorporate this concept into your business behaviour?

Of course, it is more complex for a business, especially larger energy users such as hotels, supermarkets, manufacturers, data centres, cold storage warehouses etc.  where large amounts of energy are required, but that doesn’t mean it has to be avoided.

Here we have tried to pull back the curtain and show you how Edge Utilities can easily assist in helping your company achieve their climate goals. This will not only allow you to future-proof your organisation but assist in ensuring your employees to feel like they work for a purpose driven company.

Now, if you investigate net-zero and what it means, a minefield opens

Do you include Scope 1? (direct emissions from company activity) and Scope 2 emissions? (indirect emissions from the power you purchase to use).  Scope 3 is an option. What is a scope 3 emission? It’s indirect emmissions that occur in your value chain, but are not controlled by you.

What are your company’s abilities to be green? Would you like a project linked – Power Purchasing Agreement (PPA) or Carbon Offsetting? Does Green Power suit you more than a solar panel?

Corporate Emission Reduction Transparency (CERT)

With the Government’s Corporate Emission Reduction Transparency (CERT) report asking companies to describe how they will set and meet their targets, the UN are placing more pressure on companies to set and meet ambitious targets. Stakeholders and customers are increasingly demanding a green pledge from companies they use. So,  the time to act is now, but where do you start?

It doesn’t have to be this hard!

Let’s start at the beginning

What is Net Zero? Well don’t panic it isn’t eliminating all emissions. We are not trying to be moved back to cave men with stone tools and no internet (Hear the hooray from all 14 year-olds!).

Net Zero’s aim is to ensure any human-produced Carbon Dioxide (and other gasses such as Methane) are removed from the atmosphere, either by technological advances, reducing emissions or planting trees (they are pretty good at taking the CO2 out of the air and replacing it with oxygen, and I think we can all agree oxygen is a pretty handy gas to have about!)

So, what do you do as a company to get there?

Well first you define your emissions and boundaries. Not to put words in your mouth but with NGERs (National Greenhouse and Energy Reporting Scheme) reporting the answer for most companies we be “Well to Gate”(WtG)*. It also means you have your Scope 1, 2 and 3 emissions all easily accessible.

If you don’t have an NGERs report, you can set your own by using something like the WWF Ecological Footprint calculator. Alternatively, you can ask a Carbon Neutrality advisor such as Edge with an in-house Climate Active© Registered Consultant to define your carbon footprint.

So now you know your emissions to reduce. The big question then is, which is where we can end up in a quagmire: How green is your green?

Carbon credits

Some companies are happy to carbon offset their emissions using certificates bought from the wider market or a specific project. This can be through projects right here in Australia which create Australian Carbon Credit Units (ACCU’s) or abroad through other schemes. If you are offsetting 100 per cent of all your Greenhouse Gasses as a company, you can advertise you are 100% Carbon Neutral and have achieved Net Zero.

These certificates can usually only (currently) be bought on the open market for the current year. Therefore, Edge can assist in pairing you with a project and certificates for the length of your commitment.

What if this doesn’t sound like you though – What if you want your scope 2, or electricity usage, to come from another source, not be classified as carbon neutral . What if you wish for up to 100% of your electricity usage to be renewable green, using renewable electricity. You will still meet your ‘net zero’ target but you are classifying your electricity slightly differently.

Renewable Green

Well, have you ever driven past an Ikea or Bunning’s and seen the Solar on the roof? Some of these solar panel’s feed into the Governments GreenPower scheme where you can buy electricity which has come from a government accredited GreenPower source. If more than 10% of your electricity is from GreenPower you can utilise the GreenPower logo and marketing materials for your business to meet your social licence marketing materials.

Certificates aren’t your only option, however.

We can explore options to help your company offset its emissions by purchasing renewable energy credits or by investing in a wind or solar farm. One approach is to buy enough offtake from a renewable generator to ensure that all your company’s emissions are covered.

By doing this, your company can demonstrate its commitment to reducing its carbon footprint.  This can be a positive message as it shows that your company is taking concrete steps towards a more sustainable future. Imagine your CEO on a press release next to a Solar Panel – ok not that glamorous – but effective!

Wind and Solar are often touted as the main sources of green renewable electricity, but we have a vast number of options here in Australia, including Hydropower from both rivers and dams as well as an increasing number of Battery projects, Victoria is leading the way with 48% of current battery capacity but the rest of the east coast is hot on its heels, and Victoria will not hold this share for long.

Green generation

A final option is to install your own generation and use this for some of your usage. It can also be used for you to show you are physically investing in your company’s net zero pledge.

However, you want to get there, whichever green shade suits your business, we can help.

Edge will review your business’ requirements; all we need from you is a yes and we can help define the rest and paint your business with the right shade of green for you.

It really isn’t that hard. Pull back the curtain and join us. https://edgeutilities.com.au/edge-utilities-power-portfolio/ or contact Laura on 1800 334 336.

* Well-to-Gate (WtG) is a term used in the life cycle assessment (LCA) of a product or service to describe the environmental impacts associated with the production process up to the point where the product or service leaves the factory gate or production site.

Energy savings for boutique hotels and smaller chains

Boutique hotels

From our side of the fence as energy partners, we are accustomed to working with hotels, especially through our sister business Edge 2020 who look after power purchasing, progressive purchasing and renewables for some of Australia’s largest energy users. Large hotel brands fit right into this category with their 24 hours service, multiple locations, high rise format and climate-controlled comfort. So what if you are a boutique hotel, or a small chain, is there benefit in using a broker? And if so, what does it cost?

For smaller hotels energy brokers not only save you money, but we can also add value through:

boutique hotel

  • Negotiating energy supply contracts: We have extensive knowledge of the energy market and can negotiate better energy supply contracts on behalf of your hotel, ultimately saving you money on energy costs.
  • Sourcing renewable energy: We can help your purchase power from renewable energy sources. A responsible choice and a positive point of difference for your occupants.
  • Managing energy consumption: We can help and advise you on how to monitor and manage your energy consumption by analysing your energy usage data and making recommendations for reducing energy waste.
  • Compliance with regulations: We watch the market and are knowledgeable about current energy regulations. We can ensure that your hotel is in compliance with all relevant laws and regulations.
  • Improving energy efficiency: we can work with you to identify and implement energy-efficient strategies, diversifying your energy portfolio, to deliver you real savings.
What does an energy broker cost?

Edge Utilities operates much like a mortgage broker, or insurance broker – we work for you. Our team will find the best energy deal for your hotel’s requirements and then process the administration for you to transition to the new service. So contrary to popular belief, the service actually costs you nothing.

We are remunerated directly by the energy retailer upon settlement of your contract, so there is no out-of-pocket cost to the business for the use of our services.

How does it work?

At Edge we have recently set up a service for business energy users to leverage our collective buying power through what we have called the Edge Utilities Power Portfolio. We take your energy requirements to market in our portfolio, that attracts lower fees, and then overlay the power of bulk purchasing to achieve greater savings for individual businesses.

We still contract each business separately with the chosen retailer, but use a collective customer portfolio to negotiate on your behalf.

So, if you are not part of a global brand or one of Australia’s biggest energy users but still feel the rising price of energy hitting your bottom line, it might be worth reaching out for a discussion. Not only can we provide valuable expertise and support in your efforts to reduce energy costs, we can also lower your carbon footprint, and improve your energy efficiency.

If you feel you need more control of your hotel’s energy spend, please reach out to discuss joining our Edge Utilities Power Portfolio (EUPP) where we use the power of bulk purchasing to help Australian businesses of all sizes save on their energy bills. We’ll conduct a free no obligation comparison to show you how you can save. Read more: https://edgeutilities.com.au/edge-utilities-power-portfolio/ or call us on 1800 334 336 to discuss. 

Peak demand when QLD temperatures soar

blackout when demand peaks

Last Friday, the Australia Energy market operator (AEMO) forecasted a record peak demand for electricity due to high temperatures and humidity. The higher demand could have also resulted in very high electricity prices however by 5:30pm demand had dropped and electricity prices return to a normal level.

AEMO utilised its emergency powers to prevent blackouts across Queensland. As the evening peak approached on Friday, AEMO intervened and enabled Reliability and Emergency Reserve Trader (RERT) to fill the  projected shortfall in generation. Between 5.30 pm and 9.30 pm, RERT panel members reduced consumption on-site or increased on-site generation which resulted in the overall demand for electricity across QLD to fall.

Currently, on a “normal” day, demand is easily filled with a combination of solar, wind, gas, and coal. On Friday, the system became more dependent on scheduled generation like gas and coal-fired powered stations and solar and wind generation was low. Queensland currently has reduced generation across its coal fired generators following the failure of two power stations (Callide C3 and Callide C4) in 2022. These power stations are currently not operating and undergoing repairs. On extreme days, an increase in demand can mean the difference between “normal” prices and the lights staying on due to demand outstripping supply.

Thanks to AEMO’s intervention, electricity prices did not reach the market cap of $15,500/MWh, demand dropped below the expected record levels and no blackouts occurred.

Queensland has high ambitions to replace the coal fleet with renewable and storage, however, days like last Friday only reinforce that coal-fired generation still plays a significant part in system security and price outcomes in the QLD.

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