Analysis

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Energy transition: Can WA unlock enough investment?

It’s been a packed few weeks for WA’s energy sector with the release of the reserve capacity mechanism review and an assessment of future demand. Both provide useful insights into the scale of the state’s energy transition and how the State Government plans to tackle the challenges. While there are some big numbers and major commitments, there are also a lot of gaps in the detail. We take a look at what it means for the energy sector and highlight some outstanding issues.

BY Graham Pearson May 18 2023

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Are hydrogen targets the answer?

The West Australian Government is exploring options to establish targets for blending in gas networks and to introduce an obligation for electricity retailers to buy an amount of electricity sourced from renewable hydrogen – a Renewable Hydrogen Target. We take a look at what is currently being proposed and the challenges that need to be considered.

BY Graham Pearson Aug 25 2022

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Will the WEM have enough capacity?

AEMO recently released its latest Wholesale Electricity Market Electricity Statement of Opportunities. The ESOO is important in setting the Reserve Capacity Requirement and but the biggest takeaway from this year's ESOO is the sharp reduction in excess capacity in the short term and a forecast capacity shortfall from 2025-26.

BY Graham Pearson Jun 30 2022

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Do generators earn adequate revenue?

Electricity markets are always evolving to address new and emerging issues. The Wholesale Electricity Market (WEM) has seen its share of reforms and changes. Together they can have a substantial impact on generators, so to better understand the implications the Australian Energy Council (AEC) engaged Marsden Jacobs Associates (MJA). MJA’s review is pertinent across Australia and here we look at the key findings and consider whether generators in the WEM receive adequate revenue to support the dramatic transition underway.

BY Graham Pearson Apr 07 2022

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Is it time for a full review of WA’s Reserve Capacity Mechanism?

Reform has been a constant in WA's Wholesale Electricity Market in recent years. The Energy Transformation Strategy was established in 2019 to ensure power system reliability and security. Fast forward, and the same issues that led to that work have amplified, and we now have Stage 2. We look at what it means for the Reserve Capacity Mechanism and generators in the SWIS.

BY Graham Pearson Oct 21 2021

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Is minimum demand causing a major headache?

AEMO’s Wholesale Electricity Market ESOO offers insight into the future of the WEM and its potential challenges. It presents a confident picture of generation meeting demand over the forecast period, while on the flipside it singles out the massive uptake of rooftop solar PV for causing a significant near-term issue.

BY Graham Pearson Jun 24 2021

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Will network operator batteries hurt competition?

Australia is grappling with the rapid change in how and when electricity is generated and consumed. In Western Australia, recent changes to the Electricity Networks Access Code allow expansion of the role of the network operator. Oakley Greenwood has considered what the amendments mean for competition in the Wholesale Electricity Market.

BY Graham Pearson May 13 2021

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New Energy Jobs Plan: Bold or brash?

The political landscape in WA offers different visions for the best way to obtain a reliable, secure and cost-effective energy system. The WA Liberal’s recently unveiled “New Energy Jobs plan” is head turning for the numbers included and the aggressive move towards renewables. We look at the policy and what it might mean for key stakeholders.

BY Graham Pearson Feb 18 2021

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Predicting the future: How four scenarios will shape the WEM

Power systems are often unplanned and organic, changing over time to reflect new technologies, population movements, and economic growth. The SWIS in Western Australia is no different.

BY Graham Pearson Aug 13 2020

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New Access Code: What does it mean for competition?

Western Australia’s Electricity Networks Access Code is set to undergo a major shake-up.

BY Graham Pearson Jul 09 2020

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Western Australia’s dramatically changing electricity consumption

Recent data from the AEMO shows that demand and consumption in Western Australia has changed markedly from last year.

BY Carol Tran Jul 02 2020

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Setting the mark: Why price limits should change in WA

Alongside the lofty energy reforms being rolled out in Western Australia the annual review of the energy price limits has quietly captured the attention of market participants and industry watchers.

BY Graham Pearson May 28 2020

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DER: Does WA’s roadmap set the right direction?

Last week Western Australia released a Distributed Energy Resources Roadmap that seeks to set out a framework to allow the further development and integration of DER into the South West Interconnected System over the next five years.

BY Graham Pearson Apr 09 2020

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Renewable Hydrogen Strategy launches

On 19 July, the Western Australian Government released its Renewable Hydrogen Strategy, which aims to position the state as a leader in the global renewable hydrogen industry.

BY Scott Davis Aug 01 2019

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System security: Grappling with the DER dilemma

The Australian Energy Market Operator has flagged the need to update technologies within Western Australia’s power grid as well as make market changes on the back of the rapid uptake of solar PV and distributed energy resources generally.

BY Scott Davis May 30 2019

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WA electricity reform and DER: What are the customer implications?

Distributed Energy Resources have the potential to offer customers lower cost, reliable and efficient energy. However, while there has been a growing focus on DER benefits, they also come with some challenges.

BY Scott Davis Apr 04 2019

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WA Electricity Reform: Have we got DER covered?

Uncertainty around energy policy has had an impact on all levels of the nation’s electricity supply systems. It has led to increased speculation about future reliability, electricity shortages, as well as assertions of power quality problems from the influx of renewables, even debate about the potential for blackouts as the energy mix continues to change.

BY Scott Davis Mar 28 2019

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Watching the west: WA’s microgrid inquiry

Western Australia’s energy system, like many others around the world, is expected to look very different In future. The changes are not just a result of energy policy, but by broader trends in technology and digitisation, as well as consumer desire for security and lower costs of living.

BY Scott Davis Mar 04 2019

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WA to introduce a constrained access electricity market

An important and interesting reform is in its initial design stage in the Western Australia's Wholesale Electricity Market.

BY Ben Skinner Apr 13 2018

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WA: 2017 ESOO report highlights

The Australian Energy Market Operator (AEMO) recently published the 2017 Electricity Statement of Opportunities for the Wholesale Electricity Market. We take a look at the report, which provide projections on Western Australia’s supply-demand balance.

BY Duncan MacKinnon Jul 14 2017

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