Consultations are underway for the setting of the default market offers in 2024. Both the Australian Energy Regulator (AER) and the Essential Services Commission (ESC) in Victoria and have released early papers outlining their key areas of focus. In comparing the two approaches, the AER appears to be undergoing a more detailed review, whereas the ESC seems to be more settled in its methodology overall. We take a look at the approaches being undertaken.
The development and construction of new transmission where economically justified is critical for the energy transition and it needs to be delivered in a timely and efficient manner. Several rule change proposals highlighting concerns about the TNSPs’ ability to raise the necessary finance to fund construction on terms that maintain a BBB+ credit rating. We take a look at the issue and consider whether there might be other workable approaches to deliver the transmission the transition requires.
The expanded Capacity Investment Scheme (CIS) announced last week aims to bring forward 32GW of generation investment - 9GW dispatchable capacity and 23GW variable renewable capacity - with the costs of the scheme funded by the Federal Government. It can be expected to encourage new capacity which will represent a significant injection of renewables into a grid with ongoing system constraints so does not come without some risks. We take a look at some of the pros and cons.
Earlier this week, the Federal Government and a group of industry bodies announced a partnership to co-fund an Industry Funded Financial Counselling body, designed to bring together industry and the financial counselling sector to enable better support for Australian consumers. We take a look at the announcement, and highlight some opportunities and risks for the funding body as it enters its development phase.
The peak body for energy retailers and generators, the Australian Energy Council, congratulates the Hon Reece Whitby MLA on his appointment as Energy Minister and acknowledges the work of the Hon Bill Johnston MLA during his stewardship of the portfolio.
Our appetite for solar PV continues. At the end of the third quarter, Australia’s total installed solar rooftop capacity had reached 21.2GW. More than 68,000 new installations were added to the grid in the quarter with a total installed capacity of 620MW. In addition to the latest installation statistics, we take a look at other developments in the sector, including its levelised cost of energy and the average payback period for solar PV systems.
At the end of the second quarter, Australia’s total installed solar rooftop capacity had reached a massive 20.5GW. More than 61,000 new installations were added to the grid in the quarter with a total installed capacity of 520MW. In addition to the latest installation statistics, we take a look at other developments in the sector, including its levelised cost of energy and the impact of recent interest rate rises on the average payback period for solar PV systems.
Since market start the NEM has used a single and simple outcome metric for its reliability standard: “Unserved Energy” (USE). Essentially, we target an average of no more than 10.5 minutes off supply per customer per year from rotational load-shedding. In response to a Reliability Panel Review, the Australian Energy Council has published a report by Endgame Economics that theoretically contemplates the appropriateness of the existing standard in the transitioning power system and concludes that the existing simple USE output form approach remains the best approach for the future power system, just as it is in the current power system.
The Australian Energy Council’s latest Solar Report highlights the continued growth in the role of rooftop solar within the grid. It is fast catching up to coal as Australia’s biggest generation source by capacity. We look at the latest installation figures for solar PV, battery as well as international developments.
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