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