Power and gas networks

  • Power and gas networks

    Trouble Ahead? – What’s Next For TNUoS Charges?

    Some industry participants will be well versed in the Transmission Network Use of System (TNUoS) charging regime, while others may not have had to engage with it before. Regardless of previous involvement, these charges are becoming increasingly important to understand for reasons we will discuss shortly.  In this week’s ‘Chart...

  • Power and gas networks

    Forced imports: VIC-NSW interconnector summer moonwalk?

    A lot has been written recently about how the energy transition is lagging behind the required installed capacity needed to deliver on our net-zero future. We also know that the connection of new generation requires significant investment into additional transmission infrastructure (or other non-network solutions) and that this needs to...

  • Power and gas networks

    Will we run out of gas this winter?

    In unfavourable conditions, gas shortfalls on peak days this winter are a distinct possibility highlighted by AEMO’s 2023 Gas Statement of Opportunities (GSOO). The GSOO is released yearly and provides a forecast of the adequacy of east coast gas supplies based on demand forecasts. The GSOO can highlight to the...

  • Power and gas networks

    Push to meet renewables targets intensifies charging differences in GB

    Higher transmission costs for generators in Scotland have been a feature of the GB electricity market since the introduction of cost reflective pricing, but with the ambition to increase generation levels from offshore and onshore wind and meet Net Zero generation targets, this is likely to increase. In this week’s...

  • Business supply and services

    Concentration and consolidation in the I&C gas market

    Throughout 2021 and well into 2022, energy suppliers operating in the business gas market were contending with a number of challenges, including reduction in energy demand from businesses as recovery from COVID-19 ‘lockdowns’ was ongoing and weathering volatile wholesale prices. In this week’s 'Chart of the week', we discuss the...

  • Power and gas networks

    Queensland SuperGrid – Faster than a speeding bullet

    The Queensland Energy and Jobs Plan (QEJP) sets an ambitious goal to deliver the Queensland SuperGrid. The SuperGrid is the future electricity system aiming to deliver consumers clean, reliable, and affordable power. As part of the plan, all publicly owned coal-fired power plants are intended to be retired by 2035....

  • Power and gas networks

    How much impact does the MSC have now?

    As prices in the market remain volatile, a recent drop in the price of wholesale gas has caused the Market Stabilisation Charge (MSC) to be triggered. The MSC was introduced in April 2022 as a short-term intervention in an unstable market, designed to protect suppliers that have hedged in advance...

  • Power and gas networks

    Sharing is Caring: UK Gas and Power Exports Volumes Versus 2021

    It is perhaps unsurprising to highlight that global energy markets have been exposed to significant volatility in recent years. Whether this be through the emergence of a global pandemic, dampening demand and drastically altering consumption behaviour thereafter, to the Russian invasion of Ukraine which resulted in significant changes to historic...

  • Power and gas networks

    The Quest of the Ring: Will the Sydney Ring of Power unlock commercial viability of renewables?

    With the development of Renewable Energy Zones (REZs), the need for transmission augmentation arises to unlock the transfer of energy from Renewable Energy Zones to major load centres. This may subsequently increase the commercial viability of renewable generators within the Renewable Energy Zones, for example, by reducing plants’ technical curtailments...

  • Power and gas networks

    CMP395 BSUoS cap

    On 21 September, the Final Modification Report for CMP395 was published by National Grid ESO (NG ESO). CMP395 seeks to cap the half-hourly Balancing Services Use of System charge (BSUoS) at £15/MWh over the winter period (1 October 2022 – 31 March 2023), with the deferred costs recouped in the...

  • Power and gas networks

    Losses or gains? What do transmission upgrades mean for Marginal Loss Factors

    AEMO’s 2022 Integrated System Plan has listed a group of committed and anticipated network projects, including VNI Minor, QNI Minor, and the Western Renewables Link (WRL). Besides relaxing network constraints, improving reliability, and unlocking generation capacities, transmission upgrades may also impact the Marginal Loss Factor (MLF) around the planned area....

  • Commercial and market outlook

    Gas generation on the move

    Gas and electricity prices in Australia are unavoidably linked, particularly in the evening peaks where the gas generators have increased capability to set the price. Due to the recent spike in global gas prices, there has been a distinct change in gas generator bidding strategy resulting in an increase in...

  • Power and gas networks

    UIG trends and reform options under UNC781R

    Identification of Unidentified Gas (UIG) and its allocation has been a contentious issue for some time, there are a range of views across the gas industry on how it could be improved. In this 'Chart of the week', Hursley Moss discusses the recent trends of UIG and the possible reform...

  • Power and gas networks

    Australian gas markets spike to unprecedented levels

    Australia’s gas markets are in the middle of an unprecedented price spike. Current prices in the Victorian Declared Wholesale Gas Market (DWGM) have been tracking in the $20-40/GJ range since early May 2022, with prices hitting $50/GJ on 30 May. Prices in the other gas hubs of Sydney and Brisbane...

  • Power and gas networks

    Rate me

    The transmission network in the National Electricity Market (NEM) is protected from overloads in times of events or during normal operation by nominating thermal ratings on primary elements (such as transmission lines and transformers), against which the real-time electricity flows should not be larger. This limitation is important in the...

  • Power and gas networks

    Full house – launch of Dynamic Moderation completes National Grid’s response toolkit

    National Grid ESO’s (NGESO) Dynamic Moderation (DM) service launched on the 6 April, with the first auction held at 14:30 on the EPEX platform. DM is the third and final new frequency response product that the ESO has introduced to better manage frequency deviations in a high-renewables grid. This 'Chart...

  • Commercial and market outlook

    BSUoS charges: volatility, deferral and reform

    Over the last few years Balancing Services Use of System (BSUoS) charges have experienced significant volatility, with costs reaching record high levels which have added to the rise in consumer electricity bills and ultimately resulted in intervention in order to cap BSUoS rates. In this Chart of the week', we...

  • Power and gas networks

    Are you sure this is safe?

    On a real-time basis, AEMO communicates with the market through several channels, including market notices where they update everyone about the real-time state of the market and the facilities that support it. In this Chart of the week, we dive into some of the statistics around market notices to provide...

  • Commercial and market outlook

    FCAS not dead?

    A couple of months ago, AEMO released the final Inputs, Assumptions, and Scenarios Report (IASR) that contains the basis of all planning publications for the next few years.  The changing electricity consumption and generation pattern in the NEM is introducing new challenges to the operation of the energy system; minimum and...

  • Low carbon generation

    Industrial hydrogen demand predicted to grow to 37TWh by 2050

    This week’s ‘Chart of the week’ looks at recent research from Cornwall Insight’s insight paper ­- Industrial decarbonisation key for UK low carbon hydrogen – which shows demand for hydrogen by the industrial sector is predicted to grow significantly. In fact, Cornwall Insight research shows that by 2030 UK industry...

  • Low carbon generation

    Growing pains – (nearly) six months of the UK ETS

    We are fast approaching six months since the commencement of the UK Emissions Trading Scheme (UK ETS), which launched on 19 May this year. In this 'Chart of the week', we examine the trajectory of the GB carbon market to date and discuss potential upcoming developments.

  • Power and gas networks

    The rise of wholesale gas prices … the saga

    It is certainly not a standard summer season for gas prices. Normally with demand for gas typically lower, we should see prices at the lowest levels of the calendar year. However, Summer 2021 gas prices are currently seeing bullish momentum with price points that we would expect to see in winter. In this ‘Chart of...

  • Energy storage and flexibility

    Australian Chart of the week | Hydrogen plants could profit in South Australia

    The South Australian Labor party has committed to building a hydrogen production, storage and electricity generation facility if elected at the next SA State election. Their proposal includes a $220 million 250 MWe electrolyser, $31 million for 3,600 tonnes of liquefied hydrogen storage and $342 million for a 200MW CCGT...

  • Power and gas networks

    Australian Chart of the week | Green hydrogen costs plummet, LNG prices soar

    The ACCC currently calculates the LNG netback price as the price a gas exporter could receive for gas exports excluding the costs to convert and ship the gas. Asian cold weather and supply bottlenecks have driven the February LNG netback price to nearly $20 a gigajoule, more than double the...

  • Power and gas networks

    Lower prices but a similar story for those setting the price

    2020 was one for the books with plenty of interesting events happening worldwide and also in the energy markets. For the NEM specifically, it was a time of significant changes in price outcomes compared to the previous years of comparatively higher prices. However, now comes the question of whether NEM...

  • Energy storage and flexibility

    Australian Chart of the week | Battery of the nation + hydrogen export: Can they do both?

    The Tasmanian government have announced that they will set a target to double their current renewable generation by 2040. Based on current market dynamics, this means that Tasmania will likely need consistent renewable generation of around 2.4 GW (assuming average requirements) or 3.4 GW (if scaled to peak demand). This...

  • Power and gas networks

    Australian Chart of the week | All gas demands are equal; but some are more equal than others

    One of the key objectives of the federal government’s proposal for a ‘gas-led recovery’ - besides building a 250MW gas-powered generator (GPG) - is reducing gas prices through increased supply to domestic consumers. The proposal highlights the need to invest in domestic gas exploration and transportation, as well as create...

  • Power and gas networks

    Australian Chart of the week | Your hearts must have the courage for the changing of the guards

    Policy and regulation changes in the National Electricity Market continue to accelerate with around 26 active rule changes underway. This week we wanted to look at the quantitative impact of one of the most talked about issues in the NEM this year – System Strength. There are currently 3 rule...

  • Power and gas networks

    Australian Chart of the week | Need a little controversy; ‘cause it feels so empty without me?

    Last week, in our chart of the week we wrote about the Federal Government’s announcement surrounding the replacement of Liddell with 1,000 MW of 24/7 dispatchable gas capacity. A week can be a long time as this figure has now fallen to 250MW – much more in line with AEMO’s...

  • Energy storage and flexibility

    Australian Chart of the week | GPG: From middle of the order to the nightwatchman?

    Across multiple reports published in recent weeks, the topic of changing supply dynamics has been a key focus as more renewable energy resources continue to enter the system including both grid-scale and behind-the-meter assets. Much of the commentary has focussed on the changing operation of coal generation in the face...