Analysis

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Data Centres and Energy Demand – What’s Needed?

The growth in data centres brings with it increased energy demands and as a result the use of power has become the number one issue for their operators globally. Australia is seen as a country that will continue to see growth in data centres and Morgan Stanley Research has taken a detailed look at both the anticipated growth in data centres in Australia and what it might mean for our grid. We take a closer look.

BY Carl Kitchen Jun 27 2024

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Energy Dynamics Report - A Tale of Minimum Operational Demand and Wholesale Price declines

The third quarter saw significant price declines compared with the corresponding quarter in 2022 right across the NEM. At the same time with increased output from solar and wind generation inin Queensland’s case, minimum operational demand records were set or equaled in every region. The quarter also saw the highest-ever level of negative price intervals with all regions showing an increase. We dive in to the pricing and operational demand detail of AEMO’s Q3 Quarterly Energy Dynamics Report.

BY Australian Energy Council Nov 09 2023

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Data centres: A 24hr power source?

Data centres play a critical role in enabling the storage and processing of vast amounts of online data. However they are also known for their significant energy consumption, which has raised concerns about their environmental impact and operating costs. But can data centres be fully sustainable, or even a source of power?

BY Australian Energy Council Oct 12 2023

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Demanding a response?

Concerns about the unfulfilled potential of demand response markets in the National Electricity Market has triggered periodic interest in this subject over the past three decades. Is Australia is really lagging behind on demand-side action? We take a look at the options for policy tweaks strengthening the role of demand-side considerations in energy system planning.

BY David Markham Feb 02 2023

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Back to the future for California and Germany

This has been a year where extreme events have converged requiring extraordinary measures to manage energy supplies and avoid load shedding, not just in Australia but also in Europe and the United States. In response to extreme weather and gas limitations California and Germany respectively have had to take steps to keep nuclear plants that were scheduled to close soon online to support their electricity systems. We look at the factors at play and the responses in both jurisdictions.

BY Carl Kitchen Sep 08 2022

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Distribution networks and the energy transition

The roles and responsibilities of electricity distribution networks are being challenged by the changing mix of resources in the grid. The energy transition is not just about reducing emissions by changing technologies in large-scale generation, it is also about a trend towards more localised, or distributed energy resources (DER). The Australian Energy Council’s latest discussion paper looks at what the transition might mean for distribution networks and customers.

BY Australian Energy Council Aug 11 2022

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Report provides insights into energy transition

The transition of the energy grid continues apace and its impacts on how the system operates continue to evolve. The latest GenInsights21 report provides valuable insights into some of the key trends that are emerging, this is based on analysis of extensive generation data. We take a look at its assessment of the expansion of rooftop solar and the implications for the grid.

BY Australian Energy Council May 05 2022

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Zero Emissions Dispatchability Discussion Paper

The latest discussion paper in the Australian Energy Council’s series on Australia’s Energy Future focuses on the need for zero emissions dispatchable plant to complement the growth of renewable energy and the retirement of existing coal and gas generation. It also considers the types of zero emissions dispatchable power currently available.

BY Australian Energy Council Apr 28 2022

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Cryptocurrency drives energy demand

Cryptocurrency and the best-known form, Bitcoin, has become more widespread over the past few years with more than 3 million Australian’s now owning cryptocurrency. While the focus around Bitcoin has been on its volatility and prices, there's increasing focus on the scale of its demand for electricity and the implications for grids and carbon emissions.

BY Carl Kitchen & Blaine Wang Mar 03 2022

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A 50 Hertz incentive: Double-sided Causer Pays

The Australian Energy Council has released a comprehensive study that explores a market mechanism to support Primary Frequency Response from generators and batteries. The four detailed reports – by Intelligent Energy Systems – was jointly supported by the AEC and the Australian Renewable Energy Agency.

BY Ben Skinner & Peter Brook Feb 17 2022

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New NEM records set

New records for negative and zero price periods in the NEM continue to be set. AEMO’s most recent Quarterly Energy Dynamics report shows records were set in all regions, with negative and zero prices across the NEM occurring 16 per cent of the time - more than double the previous record set in the last quarter of 2020.

BY Carl Kitchen Nov 04 2021

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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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A minimum requirement: Managing the demand drop

The challenge posed by falling minimum demand was again in the spotlight with the release of AEMO's latest supply assessment. The 2021 Electricity Statement of Opportunities highlights the major impact the increasing amount of distributed PV is having on managing the grid.

BY Carl Kitchen Sep 02 2021

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Increases in negative prices: Is it a positive?

If there's one thing the Australian Energy Regulator’s State of the Energy Market report has reminded us, it’s that the National Electricity Market can be a wild ride at times. After the NEM achieved the lowest first quarter for wholesale prices since 2012, the last few months have seen an increase in price volatility.

BY Carl Kitchen Jul 08 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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Gas and hydro: Back-up in action

The first quarter of 2021 for the NEM's spot market was notable for its lack of notability. But in a measure of the how the NEM can turn, the Q2 Queensland average price to date is $135.83/MWh, versus $42.64/MWh over Q1. We look at how the market almost always successfully responds to the NEM’s variations, and its reliance on hydro and gas-fired generation to keep the lights on.

BY Ben Skinner & Carol Tran Jun 17 2021

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Queensland blackout: Should we let the market run?

Following a fire at Callide C Power station on Tuesday 25 May, a series of events resulted in multiple generators disconnecting and 2,300MW of demand being interrupted. This was the most severe event in the NEM since SA's black system of 2016. Like all serious power system incidents, there was a complex chain of issues that will take some time to unpick.

BY Ben Skinner May 27 2021

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South Australia: Famine one day, feast the next (but one)

South Australia could borrow a slogan from another state based on recent vagaries and challenges thrown up by its energy grid. One day it experienced spot prices exceeding $5000/MWh six times between 6pm and midnight and two days later it was reporting near-record minimum demand, which required the step of curtailing rooftop solar to ensure grid stability.

BY Carl Kitchen May 20 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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How do we deal with emerging excess supply?

The economics of traditional plants are well understood, but since their construction, the way they need to operate has changed substantially. This has been driven by a combination of the age of the plants as well as the large influx of renewables, which is changing the supply and demand patterns of the grid.

BY Carl Kitchen Mar 18 2021

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