Australia ramps up its efforts against the COVID-19 health pandemic. Many have asked what COVID-19 means for the National Electricity Market (NEM) and energy sector in general.
In this Chart of the week, through a time-of-day analysis, we examine the impact the week-by-week federal restrictions on businesses and individuals are having on operational demand in the NEM. We also present insights into what other factors besides these restrictions are driving these demand patterns.
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Energy storage and flexibility
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
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
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
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
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)....
Commercial and market outlook
For the first time in 30 years, Australia’s highest-selling mid-size vehicle is not a Toyota Camry - running an internal combustion engine (ICE). As reported by 7 news, it has been replaced by the Tesla Model 3. This piece of information demonstrates that the EV uptake in Australia is achieving...
Low carbon generation
On 19 December 2022, the Federal Minister for Climate and Energy officially declared the area in Bass Strait off the Victorian Gippsland Coast suitable for offshore wind. The declared area covers approximately 15,000 square kilometres, from Lakes Entrance in the east to south of Wilsons Promontory in the west. Based...
Commercial and market outlook
There has been talk for years about the potential introduction into the National Electricity Market of a “capacity market”, with significant pushback from the industry over the potential for a capacity market to prolong the life of coal and gas and slow decarbonisation of the grid. On Friday last week...
