Australia’s Energy Future: A Community Approach

Hand placing the final wooden block labeled 'Net Zero' on top of a stack with other blocks displaying green energy and sustainability icons, against a blurred natural background.

The Australian government is moving forward with its plan to rewire the nation, a project that could be quite costly, with land acquisition prices potentially reaching $10,000 per kilometre. Recognising the importance of including everyone in the conversation, there’s a strong push for community involvement.

Last month  discussions at the All Energy conference in Victoria emphasised how crucial it is for local communities to be part of creating new Renewable Energy Zones and updating power transmission systems. The benefits? These projects can bring significant improvements to local areas.

The Australian Energy Market Commission (AEMC) is now making sure that for any new energy project to be approved, it must be communicated clearly to all involved, from government councils to the people who own the land. This means everyone should understand what’s proposed and know their rights in the process.

Here’s what’s new:

  • Information must be easy to understand and readily available.
  • Communication and engagement must be tailored to meet different needs.
  • Everyone should know how they can contribute and that their views will matter.
  • People should have the chance to be involved in energy plans from the start.

At a recent energy conference, Chris Bowen, speaking optimistically, mentioned that a well-designed renewable power system is not only reliable but also essential, especially during tough times. He noted that failing to update our infrastructure could be why Australia might not meet its energy goals. By 2030, Australia aims to get 82% of its energy from renewable sources and cut greenhouse gas emissions by 45% compared to 2005 levels.

However, there are concerns that the government’s current focus on power transmission issues might distract from a broader strategy for renewable energy, which has been somewhat lacking over the past decade. This could be why the Minister for Climate Change and Energy is avoiding tough questions at the upcoming COP28 climate conference in Dubai.

The Australian government’s decision to send Jenny McAllister, the Assistant Minister, instead of the Minister to COP28 has been noticed by many, especially by the Pacific island countries. With those nations key to Australia being announced as the COP31, are watching Australia closely. They want to make sure Australia keeps its promises to address climate change. This interest is shared by other countries, like Turkey, who are also keen on hosting the conference and holding Australia to its climate commitments.

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

Looking to reduce your business’s energy expenses without any extra cost? Edge Utilities makes it possible through collective purchasing, which enables you to unlock substantial savings. Our focus is on empowering SMEs like yours by fetching the most competitive rates available. You can get in touch with us by emailing us at save@edgeutilities.com.au or calling us at 1800 334 336. Start saving today with Edge Utilities!

Australia’s Future Energy Direction

Engineer inspecting solar panels with a laptop at a solar power plant.

New details have emerged from the Department of Climate Change, Energy, the Environment, and Water. They hint at what Australia’s energy might look like after 2030. A new plan called the Renewable Energy Guarantee of Origin (REGO) was discussed in the ‘Australian Hydrogen News’ section. This plan wants to keep track of where our green electricity comes from.

Back in December 2022, some ideas were introduced. The latest update gives us more details. It says the REGO plan could start by January 2025. This plan isn’t just about dates. It’s a sign that we’re entering a new age of green energy. REGO plans to introduce new energy certificates. These will replace the old LGC and STC rules. The impact of REGO will likely be felt for many years, even after 2030. It could change the way we think about Renewable Energy Targets (RET) after 2030.

What does this mean for our current energy targets? Changes will happen slowly. Our current energy goals will stay the same up to 2030. But the new REGO plan will start alongside them. Both plans will run together until 2050. This is good news for people looking to invest in energy.

One great thing about REGO is that it includes everyone. All ways of making electricity can get a REGO approval, even those not up to the mark now. But some projects, like GreenPower, might not use this new certificate even if many others do.

REGO also talks about smaller energy projects. We might see more Virtual Power Plants (VPPs) and coordinated energy resources in the future. If they join REGO after 2030, it could change the energy market.

The REGO plan also mentions getting energy from outside Australia. Projects like Sun Cable show this might be possible. But, storing this energy is just as important as making it. The department realises this. They suggest giving certificates based on how much energy we store and use.

The main message? Big changes are coming. Some of it we’ve heard in December. New laws might come in 2024, and everything could start by January 2025. This isn’t just about hydrogen. It’s about the whole energy sector. If you’re in business, you’ll want to keep an eye on this.

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

Looking to reduce your business’s energy expenses without any extra cost? Edge Utilities makes it possible through collective purchasing, which enables you to unlock substantial savings. Our focus is on empowering SMEs like yours by fetching the most competitive rates available. You can get in touch with us by emailing us at save@edgeutilities.com.au or calling us at 1800 334 336. Start saving today with Edge Utilities!

Powering the Future: Queensland’s Renewable Challenge

People in a community with wind turbines, symbolizing sustainable and renewable energy sources.

In September 2022, Queensland unveiled its SuperGrid Blueprint, hoping to drastically increase its use of renewable energy. They’re aiming high – wanting 70% of their energy from renewable sources by 2032 and 80% by 2035. This is a big deal for a place that once relied heavily on coal.

Central to this plan are six special areas called Renewable Energy Zones, which will use the sun and wind to generate power. But, like all big plans, there are challenges. Many are wondering if the sun and wind can provide enough constant power, especially during high-demand times.

There are also concerns about terms like “low to zero emission gas-fired generation.” What exactly does “low to zero” mean? Vague phrases like these make some people doubt the plan’s true commitment to clean energy.

While Queensland’s connection with neighboring New South Wales provides a backup plan, it raises questions. Does Queensland truly believe it can stand on its own two feet in this energy transition?

Even with these uncertainties, the SuperGrid Blueprint holds promise. It could pave the way for new innovations and show other regions how to shift towards cleaner energy. However, turning these plans into reality won’t be easy.

In the end, only time will tell if Queensland’s energy vision will light up the future or if it’s just chasing the wind.

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!

The Future of Heating in Victoria: Embracing Heat Pumps

In a world where sustainable energy solutions are imperative, countries and regions are devising varied strategies to meet their energy demands while also aligning with environmental considerations. While the UK has chosen to explore new oil and gas fields, Victoria is steering towards a more sustainable and eco-friendly path, evidenced by its recent decision to prohibit new gas connections in residential homes and government infrastructure.

The pivotal question that arises from this policy change is straightforward: With the cessation of gas, what’s the best alternative for Victorians to stay warm without overburdening the electrical grid?

The solution that has emerged as a frontrunner is the heat pump. Unlike traditional heating systems, heat pumps do not generate heat; instead, they transfer it. Analogous to an air conditioner operating in reverse, these devices extract ambient heat from the environment and amplify it to warm our homes. Notably, their efficiency is commendable. Heat pumps can produce up to 3.5 times the amount of energy they consume, making them a highly cost-effective alternative to gas boilers.

The Victorian government has recognized this potential and is actively promoting the transition. A fund has been established to support the electrification of new homes, with a significant focus on integrating heat pumps. However, the journey isn’t devoid of challenges. Balancing the increased demand on the electrical grid, factoring in rising electricity prices, and ensuring consistent supply are issues that need meticulous planning.

In summary, while the move away from gas represents a significant change for Victoria, innovations like heat pumps provide a promising and efficient alternative. As the state progresses in this direction, the vision of a sustainable, eco-friendly future becomes increasingly tangible.

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!

Understanding Safeguard Reforms: Australia’s Bold Move Towards Greener Industries

safeguard reforms

In an effort to combat climate change, Australia has initiated a series of environmental regulations known as the Safeguard Reforms. These reforms began in July 2023 and are currently undergoing ongoing updates. In a nutshell, the goal is to align Australia’s industries with international standards for environmental practices, especially those concerning greenhouse gas emissions.

So, how are we going about this? Well, the government department overseeing these changes is closely studying what’s been successful in other countries. They’re identifying top-performing industries around the globe that are producing less waste and pollution. Then, they’ll use these examples to set ‘benchmarks’—or standards—for Australian industries.

Now, here’s where it gets interesting. Suppose a country like Japan invents a new, super-efficient technology that significantly reduces emissions. If it’s among the best in the world, it will set the standard for Australian industries, even if it was tailored specifically for Japan’s unique economic needs. So, Aussie companies will need to keep pace, adopting any new technology and training staff to use it.

There’s still much to be decided in this ongoing process. For example, annual benchmarks will initially drop by 4.9% each year until 2030. After that, it’s suggested that changes will occur in 5-year increments. This will be confirmed in consultations planned for 2027.

By the end of this year, we can expect to see the finalisation of these benchmarks. They’ll be incorporated into law and take effect in the financial year of 2024.

One area under specific review is the coal industry. A new rule is being introduced that covers all emissions related to coal mining, including waste gas. The goal is to have a single standard, or ‘production variable’, that covers all activities in the industry. This could potentially revolutionise how we manage waste and emissions from mining, and it will certainly keep coal companies on their toes!

However, these new regulations are still open for debate. Public consultations are currently ongoing, giving citizens and industries a chance to voice their opinions and concerns. If you want to have your say on these changes, make sure to submit your thoughts before the deadline on August 11.

Australia is taking a significant step towards greener industries. By adopting these internationally informed practices, we’re pushing for a cleaner, more sustainable future.

The team at Edge Utilities are passionate about renewables and sustainability, we are energy brokers with an eye on the planet. We are committed to helping businesses reach their net zero goals through renewable power contracts.
To discuss options and plans for your business 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

Tax on coal, gas and new investment

The Private equity company EIG Global Energy Partners is betting big money on gas, offering $18.4b for Origin Energy is which was a ~55% premium relative to its last close price. This premium suggests EIG Global Energy Partners believes gas will set price as the Chairman of EIG stated, “it is willing to ignore government threats of export controls and price caps and invest in Australia for the next 20 years because it believes the nation’s gas resources will play a crucial role in the transition to clean energy”.

As federal politics look to potentially intervene in the domestic coal and gas markets, the investors do not appear to be concerned. It seems the thought process is that gas is a sound investment for the next 20 years as we transition to renewables. No doubt they will be keeping an eye on the regulatory environment but with a track record of investments in the UK and German markets where market inventions are currently enabled, they are in a good position to understand the risks and rewards.

As Origin owns a fleet of gas generators that traditionally operate over the periods where electricity prices are at their highest, it puts them in a position to take advantage of the market, producing and selling electricity at high market prices securing a nice profit.

As entry to the industry and source project finance is difficult, Origin’s gas turbines will have time to continue to produce electricity and make money at these heightened energy prices. With new investment being stalled due to funding constraints pressure on electricity prices will continue to occur.

The question for investors, politicians and the public is, do you view gas as the transitional fuel to renewables? While investors may see a distinction between gas and coal, do the end users of electricity hold similar assumptions?

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 (https://edgeutilities.com.au/edge-utilities-power-portfolio/). Reach out, we would love to assist you: info@edge2020.com.au or call on:1800 334 336