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!

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!

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. 

Is your business ready to be part of the Brisbane Olympics 2032?

Brisbane Olympics 2032 Precinct

Brisbane 2032 International Olympic Committee (IOC) have called for businesses to be “Brisbane Olympics 2032 Ready” but what does this mean for your Business Energy?

As we countdown to the Brisbane 2032 Olympics, action towards creating Australia’s first net zero carbon region has commenced with the launch of the Brisbane 2033: Legacy Project. This project outlines a policy and framework of SMART goals across the key themes of Connected, Creative, Equitable and Enterprising with the goal to achieve a Climate Positive Games and positive legacy for the region.

“In 2032, the eyes of millions of people will be in our homes, what do we want them to see?” John Coates AC, President of Australian Olympic Committee.

The Queensland Government has indicated that all business intending to be a part of the Brisbane Olympics 2032 will be required to meet the net zero carbon goals and the Games’ procurement rules on zero emissions and zero waste.

So how can you become Brisbane 2032 Olympics Ready and be a part of Australia’s first net zero carbon region?

Our team of energy experts at Edge Utilities have outlined three key ways below.

3 ways to show your business’s commitment to a Climate Positive Games with Edge Utilities.

 

  1. Reduce your carbon emissions.

Taking action to reduce carbon emissions is a crucial step in preparing for the Brisbane 2032 Olympics. There are various effective approaches to achieve this goal. These include conducting equipment assessments, upgrading to energy-saving infrastructure, implementing solar panels, integrating smart technology, and adopting energy-efficient lighting solutions.

By implementing these strategies, businesses can make significant strides towards Brisbane 2032 Olympics readiness while actively contributing to a sustainable future.

  1. Purchase green energy.

Simply purchasing green energy is another great way to show your Climate Positive commitment to the Brisbane 2032 Olympics. Edge Utilities can work with you to secure cost effective energy procurement from renewable resources, such as solar, wind and hydro. We do the administrative work for you, ensuring reliable secure energy for your business whilst, managing cost and reducing your emissions through green purchasing.

As part of our comprehensive services, we can guide your business in exploring energy procurement and generation options, including energy carbon offsets, enabling you to make informed decisions towards sustainable and low-carbon operations. We are deeply committed with renewable energy, which play a critical role in preparing for a Climate Positive Olympics.

One of our key offerings is the facilitation of Power Purchase Agreements PPAs powered by Edge2020. Power Purchase Agreements allow businesses to procure energy from renewable sources such as solar, wind, and hydropower at fixed, predictable costs. This approach is particularly advantageous for small to medium-sized businesses, providing a cost-effective path to lower carbon emissions and fostering growth within the renewable energy sector.

Learn more about Power Purchase Agreements.

  1. Join a renewable energy portfolio.

A renewable energy portfolio can open a wealth of opportunities for your business and goes beyond simply securing renewable power. By joining a power portfolio, you will benefit from the power of bulk purchasing, yielding cost advantages not usually accessible to individual businesses and mitigating price fluctuations. Edge Utilities offers individual businesses the opportunity to apply for a renewable energy portfolio through our Edge Utilities Power Portfolio (EUPP).

When businesses join the Edge Utilities Power Portfolio, they gain access to the kind of purchasing power that is typically only available to larger portfolios. This opens the door to custom-made electricity contracts, providing an essential tool for businesses aiming to achieve net zero emissions. Edge Utilities Power Portfolio serves to remove obstacles for Australian businesses, making the goal of 100% renewable electricity within their contracts a more achievable reality. This not only supports environmental initiatives but also echoes the sustainable business strategies akin to the values championed by global events like the Brisbane 2032 Olympics.

Discover more about the Edge Utilities Power Portfolio.

Edge Utilities has a climate active registered consultant, and it’s powered by Edge2020. Gain access to tailored energy solutions, green energy experts, risk management and emission reduction strategies designed to secure your energy procurement, mitigate fluctuating energy prices, and go for green and gold!

 

Connect with us today.

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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. 

Good news regarding the 2023 budget, but does everything that glimmers gold?

A man and woman at a computer

In contrast to last year’s budget in October 2022 which forecasted a deficit $36.9bn for this financial year Hon Dr Jim Chalmers MP announced a surplus of $4bn in the 2023 Federal Budget, which is the first in 15 years.

Under a tightly controlled budget, the industry could be forgiven for worrying that there may have been unexpected shocks. Especially with the closure of Liddell, Baywater trip and extended outages. However, it was good news! But is everything that glimmers actually gold?

Little was mentioned in the 2023 budget regarding the huge windfalls the treasury gained from the commodity industry and that fact that 20 per cent of the surplus came from increased commodity prices.

Overall, the budget was scarce on Energy for large business, with it mainly focusing on infrastructure for Electric Cars, cost of living relief for residential and small businesses and the creation of a National Net Zero Authority.

There was a mention of the new Hydrogen head start program, giving $2bn to the scheme and more investment in green industry, which was expected. And interestingly a mention of the Capacity Investment Scheme “unlocking over $10 billion of investment in firmed-up renewable energy projects up and down the east coast” which we hope to hear more about.

The Gas and Coal caps were mentioned but there has been no talk of the Coal Cap either being extended or removed when it expires in December 2024.

Undoubtably in the commodity space the biggest losers yesterday were the Gas companies, due to the extension of the Gas cap at $12/GJ into 2025, increased taxes due to the extraordinary market conditions, and the Petroleum Rent Resource Tax.

The budget is expected to be picked apart, but overall, there are no major changes to the status quo, and the government is cautious about throwing around too much cash in the face of slowing economic growth.

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. 

Gas Cap Extension: What Small and Medium Business Owners Need to Know

Gas fireplace

The Climate Change and Energy Minister Chris Bowen is considering a gas cap extension to the $12/GJ cap on wholesale gas prices. This cap, set to expire at the end of the year, affects both energy producers and users. If extended, it could provide more certainty for businesses that rely on gas for their operations.

Energy producers are worried about how the cap extension might affect long-term pricing, as it may include a “reasonable pricing” clause. This means gas companies can only charge a price based on production costs plus a reasonable margin, without considering their capital investments during exploration and development. Gas buyers can challenge contract prices through a formal dispute process.

Gas producers are waiting for the government’s decision on the cap extension before finalizing new gas supply contracts for 2024. The federal government is also expected to introduce a Petroleum Rent Tax, potentially increasing tax revenues by $100 billion. This tax may cause concerns among gas producers, leading to fluctuations in energy prices for businesses.

The new regulations may allow for exemptions, especially for new projects that increase domestic gas supply. The Australian Petroleum Production & Exploration Association (APPEA) emphasizes the importance of gas in achieving a cleaner energy future, urging the government to create settings that encourage investment in new supply and put downward pressure on prices.

Australia must keep exploiting its gas resources to meet its net zero emission goals. In the long run, this should benefit the gas and electricity industry’s producers and end customers while assuring their security.

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.