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. 

 

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

Federal and State Government agree to power bill

Last Friday National Cabinet met and agreed on the states introducing a cap on wholesale gas and coal. The temporary cap will be set at $12/GJ for gas and $125/t on coal and will not be enforced on export contracts, therefore not limiting the opportunities for high international prices.

During the meeting it was agreed that the states would sort out the coal cap and the Federal Government would change laws to legislate the $12/GJ cap on domestic gas. As the caps are focused on the domestic market, they will only have a small impact on the profitability of producers. It is anticipated that only 4% of gas 10% of coal will be covered by the cap, the remaining volumes will be exposed to international markets. As the states have been tasked with implementing the cap it is likely they will go down different routes to achieve the same outcomes.

The simplest state to implement the changes will be Queensland as the government still owns and control 80% of the coal fired generation fleet. Queensland will likely use its direction powers and instruct its government owned corporations (GOCs) to dispatch the coal assets below specific prices, where NSW will likely use changes in law to cap the price.

As the cap mechanism will be used for uncontracted gas and coal, this may have limited impact on generators, as most of the coal and gas has already been produced under longer term contracts at a cost below the proposed caps. At this stage it is unlikely that the mechanism will be in place until February despite federal politicians being recalled to Canberra on Thursday to discuss the issue.

While the bill will get the support of the House of Representatives it is expected the Greens will put pressure on the government in the Senate to limit any compensation for the coal producers.

In line with the price caps, National Cabinet also discussed an assistance package to lower the impact on families and business as a result of high inflation and high commodity prices.

If you feel you need more control of your company’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. Read more: https://edgeutilities.com.au/edge-utilities-power-portfolio/ or call us on: 1800 334 336 to discuss.