New South Wales

  • Low carbon generation

    “Ooh, a storm is threatening, My very [interconnection] today”: Can states utilise interconnection to share wind resources?

    Penetration of renewables continues to dominate the energy news, as we saw renewables as a proportion of total demand reach new heights this week to a new record of ~70% penetration. In light of this continuing march toward a renewable-dominated grid (building on some analysis we did in Chart of...

  • Energy storage and flexibility

    How long is the ‘Golden time of day’ for batteries?

    A key part of the business case for grid-scale standalone batteries is the arbitrage opportunity between low daytime wholesale prices (when renewable energy generation from solar is plentiful) and high evening prices (when the sun goes down and household demand ramps up quickly). The share of battery revenue coming from...

  • Low carbon generation

    MLF changes in NSW in the past decade

    MLF, short for Marginal Loss Factor, represents the portion of electricity losses that occur along the transmission network between a connection point and the Regional Reference Node (RRN). Within the NEM, the MLF serves as a metric to quantify these losses along the network, playing a pivotal role in determining...

  • Commercial and market outlook

    How does thermal storage stack up compared to batteries?

    Along with the retirement of coal/gas power plants in the NEM, long-duration energy storage systems (LDESS), often exceeding 8 hours of storage, are becoming more crucial in transitioning to a more sustainable and renewable energy future. LDESS technologies, such as battery storage systems (BESS), thermal energy storage systems (TESS), compressed...

  • Commercial and market outlook

    VNI West selected path; an incentive for delaying coal retirements?

    On 29 May 2023, AEMO published a conclusions report on the VNI West Project. According to the report, option 5A (a variant of  AEMO’s preferred option in a previous consultation paper) is preferred for VNI West. In option 5A, the transmission line crosses the Murray River north of Kerang (Wamba...

  • Low carbon generation

    NSW’s transition to a new era: What will replace Eraring?

    After 52 years of operation, the NSW Liddell power station officially shut down last 28 April. With Liddell’s closure, NSW’s transition to a green energy future is in full swing. First announced in 2015, NSW had seven years to ensure there is enough replacement capacity once Liddell is retired. Since...

  • Commercial and market outlook

    It’s the Liddell things that matter

    Australia’s oldest coal-fired power plant Liddell retired completely in the last week of April 2023 after 52 years. This giant of AGL, which had a total registered capacity of 2,000 MW, operationally acted as a 1600MW station and 1200MW after the closure of its third unit. Australia’s transition to clean...

  • Energy storage and flexibility

    A look at AEMO pre-dispatch forecasts over the last year

    The Energy Security Board (ESB), under the direction of the National Cabinet, is currently working on a number of changes that will impact how generators connect to and operate within the National Electricity Market (NEM). The Congestion Relief Market (CRM) model is one such change to how the NEM currently...

  • Commercial and market outlook

    Patriots ‘Dynasty’ off to a rough start, as New England suffers loss to the MLFs…

    For many, the first of April is marked in calendars as a day for jokes and silly nuisances. For the few, specifically the energy industry, we have it pencilled in for the release of the upcoming year’s Marginal Loss Factors (MLFs). Over the last half-decade, movements in MLFs have received...

  • 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...

  • Energy storage and flexibility

    State of Storage: Investigating battery profit for NEM states

    It has been an interesting year for Australian energy markets, facing unprecedentedly high energy prices, coal outages, and market suspension. In today’s Chart of the week, we will investigate the impact a BESS would have made during FY 2022. Using Cornwall Insight Australia’s battery simulation model, we simulated a stand-alone...

  • 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...

  • Commercial and market outlook

    Off the charts: ESOO flags earlier reliability shortfalls but no need to panic yet

    In the space of a year, the prospect of reliability shortfalls in the NEM has increased significantly. This is the stark finding of AEMO’s latest Electricity Statement of Opportunities (ESOO) report. In our Chart of the week, we illustrate how reliability forecasts have deteriorated in just a year, and we...

  • Energy storage and flexibility

    Seasonal frequency in the NEM: is VRE continuing to drive it?

    Frequency control remains a challenge for AEMO. New PFR (primary frequency response) provisions established in March 2020 will help AEMO to control frequency more efficiently. However, is it yet to be seen how market participants will be incentivised to participate in PFR market. In light of the rapid growth of...

  • Commercial and market outlook

    Is the NEM going off schedule?

    Is the NEM getting harder to control with rising variable renewable generation and distributed photovoltaic growth? AEMO’s balancing of scheduled supply is critical to ensure the system remains stable and wholesale prices work efficiently. This Chart of the week briefly examines if the NEM is “on schedule” to meet this...

  • Energy storage and flexibility

    Australian Chart of the week | Slip slidin’ away, You know the nearer your destination

    In our previous ‘Chart of the week’ back in November 2020 (Issue 61), we looked at the projected uptake of battery storage projects in the National Electricity Market (NEM). Nine months on, with a number of large projects announced, we felt it was worth an update. In our last chart,...

  • Low carbon generation

    Australian Chart of the week | A view of captured prices by technology in New South Wales

    This Chart of the week examines the historical captured prices of selected technologies within NSW for the last 10 years. Figure 1 shows the historical rolling monthly average of captured prices of various technologies within New South Wales against the monthly generation of variable renewable resources including small scale rooftop....

  • Low carbon generation

    Australian Chart of the week | Energy is neither created nor destroyed; it just transitions

    In April, the NSW government opened consultations on “specific urgent and mechanical policy details” on regulations needed to implement its Electricity Infrastructure Roadmap released late last year. The Roadmap aims to unlock 12GW of new renewable energy capacity from selected Renewable Energy Zones (REZs) with an additional 2GW in storage...

  • Energy storage and flexibility

    Australian Chart of the week | Push it to the limit: the evolution of MPC & market tightness

    With summer officially starting last Tuesday, the National Electricity Market (NEM) is about to go through the season that typically has the highest demand. Market tightness usually seen during summer sometimes pushes power prices to their maximum level – the Market Price Cap (MPC) – currently set at $15,000/MWh. In...

  • Low carbon generation

    Australian Chart of the week | To the left, to the left; is Liddell irreplaceable through the day?

    In Issue 52, considering the recent announcement from the federal government to build a 250MW (previously 1GW) gas-fired plant in New South Wales (NSW), we investigated price volatility trends in the state and the opportunities for storage to fill the impending energy gap when Liddell retires in 2023. In this...

  • Low carbon generation

    Australian Chart of the week | Got your money; wind shaking up the merchant revenue order?

    Ideal weather conditions for wind and solar across the NEM in recent weeks saw renewables hit new highs in the National Electricity Market (NEM). A recent update from the Australian Energy Market Operator (AEMO) indicated that around noon on the 20th of August, wind and solar contributed 11.7GW - 46.5%...

  • Low carbon generation

    Australian Chart of the week | Don’t let the sun go down on me: solar in the sunshine state

    Previously, in Issue 45, we examined how wind and solar technologies are performing against (and impacting) the time-of-day price shape in New South Wales (NSW). In this Chart of the Week, we move further north to examine the situation in Queensland and the profound impact solar is beginning to have...

  • Low carbon generation

    Australian Chart of the week | The wind and the sun: an old age quarrel… or friendship?

    Last week, the Australian Energy Market Operator (AEMO) released the Q2 edition of its Quarterly Energy Dynamics (QED) report. A key finding in the report is the reduction in wholesale electricity prices seen last quarter. With government-supported Renewable Energy Zones (REZs) being proposed especially in New South Wales (NSW), what...

  • Low carbon generation

    Australian Chart of the week | A transition period is a period between two transition periods

    Australia’s energy transition enters a new decade. A big part of the first quarter has focused on greater renewable integration into the grid. Given the level of attention on these integration issues, now is a good time to review the last decade. This Chart of the week explores how black...