he 10-year view in Electricity Statement of Opportunities (ESOO) highlights the fragility of the operational margin across the NEM. In particular, Victoria has identified as under threat of load shedding and an increased possibility of unserved energy this summer. This Chart of the week explores the Australian Energy Market Operator’s 2019 Electricity Statement of Opportunities (ESOO).
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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...
Energy storage and flexibility
Turning Japanese: Typical power price spreads in Japan
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Commercial and market outlook
Prices soar in the west
For the first time in the history of the Western Australian Wholesale Electricity Market (WEM), the balancing price reached the maximum price limit of $1,018/MWh between 5:30pm and 7:30pm on Tuesday, 29 November 2022. This came one month after the state-owned Muja C Unit 5 coal power station was closed....
Energy storage and flexibility
A pebble in the water makes a ripple effect…
At demand levels averaging only ~200-700MW, FCAS markets are dwarfed by the ~20,000MW energy demand in the NEM. Nonetheless, with 8 different markets to participate in, the potential value that participating in FCAS can add to a participant's revenue should not be underestimated. In this Chart of the week, we...
Energy storage and flexibility
Delays to NEM connections and accurate forecasts
AEMO is currently consulting on its methodology for reliability forecasting in the NEM, and among their proposed changes is an adjustment to the inclusion of projected new capacity. The existing assumptions are being examined due to two factors; Most new connections in the NEM assume that the time taken to...
Energy storage and flexibility
Crying over spilled solar – how much can a battery help?
A standalone battery earns its revenue not only from the arbitrage opportunity between day and night prices but also from participation in FCAS markets. This remains true when the battery is paired with a solar farm but can be complicated by constraints or trade-offs between FCAS participation and solar export....
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....
Commercial and market outlook
Australia’s hydrogen success is tied to energy market policies
According to South Australia’s Hydrogen Power Plant study, the global demand for hydrogen is projected to reach 650 megatons in 2050, with a potential export market of $300b per year. In this market, Australia is well placed for renewable hydrogen production with a considerable penetration of variable renewable energy (VRE)....
