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The future of energy generation and storage
- Thread starter Value Collector
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Renewable power is set to break another global record in 2022 despite headwinds
New capacity for generating electricity from solar, wind and other renewables rose by a record amount in 2021 and will do the same this year as governments increasingly take advantage of renewables’ energy security and climate benefits, according to our latest Renewable Energy Market Update.
Global capacity additions are expected to rise this year to 320 gigawatts – equivalent to an amount that would come close to meeting the entire electricity demand of Germany or matching the European Union’s total electricity generation from natural gas. Solar PV is on course to account for 60% of global renewable power growth in 2022, followed by wind and hydropower.
New capacity for generating electricity from solar, wind and other renewables rose by a record amount in 2021 and will do the same this year as governments increasingly take advantage of renewables’ energy security and climate benefits, according to our latest Renewable Energy Market Update.
Global capacity additions are expected to rise this year to 320 gigawatts – equivalent to an amount that would come close to meeting the entire electricity demand of Germany or matching the European Union’s total electricity generation from natural gas. Solar PV is on course to account for 60% of global renewable power growth in 2022, followed by wind and hydropower.
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Looks we have our first car off the starting line.
Discover Energy is a company which retails only. That is, it does not own physical generation assets and is simply a buyer on the wholesale market and a retailer to consumers. It is one of the many retailers competing for customers' business.
Following is from an email sent to a customer and which has been drawn to my attention:
Daily supply charge increased from 74 cents to 110 cents = 49% increase
Peak consumption was 36.22 cents / kWh now 65.19 cents = 80% increase
Shoulder consumption was 14.98 cents / kWh now 34.44 cents = 130% increase
Off peak consumption was 12.23 cents / kWh now 28.13 cents = 130% increase
No the email wasn't dated 1st of April. Location for the above is NSW.
The company has also ceased accepting new customers with this information also being clear on their website. This could all get rather interesting....
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There is talk of a very big battery East of Collie near Muja power station, which is in the process of downsizing.
reneweconomy.com.au
Ross Garnaut’s Sunshot Energy is proposing to build a massive 800MWh battery as part of a green hydrogen and industrial hub in the Western Australian town of Collie, in the heart of the state’s coal country.
Sunshot, which is chaired by Garnaut, says it is assessing the economic case for establishing a hydrogen electrolyser, powered by renewable energy, which could also produce green ammonia and urea for agricultural and industrial uses.
It says a big battery of 600MWh to 800MWh would be a key feature of the hub, which would provide renewable energy to new and existing industrial projects in Collie.
The battery will be four times that the Hornsdale Power Reserve in South Australia and four times bigger than any other big battery proposed in Western Australia to date, including the Kwinana battery put forward by Synergy and the Wagerup battery put forward by Alinta.
The W.A. government, which wants to establish new industries to support the town as the Muja coal fired power stations are progressively closed, has provided up to $1 million from the Collie Futures Industry Development Fund to fund the investigation into the Collie Battery and Hydrogen Industrial Hub Project.
Garnaut’s Sunshot eyes 800MWh battery and new green hydrogen hub in WA coal centre
Ross Garnaut’s Sunshot Energy proposes 800MWh battery as part of new green hydrogen and industrial hub in heart of Collie coal region.
reneweconomy.com.au
Sunshot, which is chaired by Garnaut, says it is assessing the economic case for establishing a hydrogen electrolyser, powered by renewable energy, which could also produce green ammonia and urea for agricultural and industrial uses.
It says a big battery of 600MWh to 800MWh would be a key feature of the hub, which would provide renewable energy to new and existing industrial projects in Collie.
The battery will be four times that the Hornsdale Power Reserve in South Australia and four times bigger than any other big battery proposed in Western Australia to date, including the Kwinana battery put forward by Synergy and the Wagerup battery put forward by Alinta.
The W.A. government, which wants to establish new industries to support the town as the Muja coal fired power stations are progressively closed, has provided up to $1 million from the Collie Futures Industry Development Fund to fund the investigation into the Collie Battery and Hydrogen Industrial Hub Project.
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From discussion on another thread regarding the recent federal election, some comments about gas supply to south-eastern Australia.
Only point I need clarify is that the states of relevance NSW, ACT, Vic, Tas and SA collectively. The basic reason being a fairly high level of interconnection between them (noting that Tas is effectively part of Vic in this context) but with a far lesser connection to anywhere else, that being Queensland.
Queensland - SA pipeline can supply about 20% of peak day consumption or about a third of annual consumption so it's fairly constrained.
Now here's a chart from the ACCC which gets straight to the point:
In short, production's coming down real quick in the absence of new development and even with development of the known but undeveloped resources it's still likely to fall short of demand.
At present gas storage levels are also mixed. Some good, others not good. Charts from the AEMO Gas Bulletin Board and current through to today:
Newcastle NSW:
Iona Vic:
Dandenong Vic:
Moomba SA:
So we have southern states production reliant on immediate major investment in order to slow the decline and we also have storage levels that apart from Iona are nowhere near full.
Now the only way to bridge that gap in the short term is to divert gas production in Qld away from the LNG plants and into SA. Physically that's constrained by pipeline capacity but can be done. Financially however it comes at a rather high price, that of the lost LNG production, and ultimately that's what's triggered the huge jump in gas prices over the past month. Gas production, gas coming out of the ground, hasn't been sufficient to run both the domestic market and LNG in full and so up goes the price.
Longer term, and in this context that means 2024, the presently likely "solution" is physical gas imports directly into NSW at Port Kembla and connecting directly to the existing Eastern Gas Pipeline which links Victoria to NSW with gas then able to flow in both directions from Port Kembla. The downside of that approach, of course, is that whilst it addresses physical supply (assuming there's LNG to import), it doesn't fix the price problem.
Put that all together and it's the trigger for a tight market, high prices, manufacturers and retailers ceasing operations and a spike in electricity prices too which won't be resolved quickly in the absence of either an LNG price crash or heavy government intervention.
Noting that the scale of any intervention would be one a very high levels politically given it involves defaulting on contracts with foreign buyers. It's not something that someone within the industry's just going to go and do, it would be a matter for the federal government to decide upon.
I've intentionally avoided comment on politics but you could draw a few conclusions from it all if you choose.
Only point I need clarify is that the states of relevance NSW, ACT, Vic, Tas and SA collectively. The basic reason being a fairly high level of interconnection between them (noting that Tas is effectively part of Vic in this context) but with a far lesser connection to anywhere else, that being Queensland.
Queensland - SA pipeline can supply about 20% of peak day consumption or about a third of annual consumption so it's fairly constrained.
Now here's a chart from the ACCC which gets straight to the point:
In short, production's coming down real quick in the absence of new development and even with development of the known but undeveloped resources it's still likely to fall short of demand.
At present gas storage levels are also mixed. Some good, others not good. Charts from the AEMO Gas Bulletin Board and current through to today:
Newcastle NSW:
Iona Vic:
Dandenong Vic:
Moomba SA:
So we have southern states production reliant on immediate major investment in order to slow the decline and we also have storage levels that apart from Iona are nowhere near full.
Now the only way to bridge that gap in the short term is to divert gas production in Qld away from the LNG plants and into SA. Physically that's constrained by pipeline capacity but can be done. Financially however it comes at a rather high price, that of the lost LNG production, and ultimately that's what's triggered the huge jump in gas prices over the past month. Gas production, gas coming out of the ground, hasn't been sufficient to run both the domestic market and LNG in full and so up goes the price.
Longer term, and in this context that means 2024, the presently likely "solution" is physical gas imports directly into NSW at Port Kembla and connecting directly to the existing Eastern Gas Pipeline which links Victoria to NSW with gas then able to flow in both directions from Port Kembla. The downside of that approach, of course, is that whilst it addresses physical supply (assuming there's LNG to import), it doesn't fix the price problem.
Put that all together and it's the trigger for a tight market, high prices, manufacturers and retailers ceasing operations and a spike in electricity prices too which won't be resolved quickly in the absence of either an LNG price crash or heavy government intervention.
Noting that the scale of any intervention would be one a very high levels politically given it involves defaulting on contracts with foreign buyers. It's not something that someone within the industry's just going to go and do, it would be a matter for the federal government to decide upon.
I've intentionally avoided comment on politics but you could draw a few conclusions from it all if you choose.
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Adding to the previous post, where the gas is used.
The following figures are all as a % of total gas consumption across NSW, Vic, SA and Tas combined with ACT figures included in NSW:
By end use and state:
Victoria residential = 22.4%
NSW manufacturing = 12.1%
Victoria commercial & services = 11.8%
SA electricity generation = 11.8%
Victoria manufacturing = 11.2%
Victoria electricity generation = 7.9%
NSW residential = 5.3%
NSW electricity generation = 4.5%
SA manufacturing = 3.9%
NSW commercial & services = 3.0%
SA residential = 2.4%
SA commercial & services = 2.3%
Tasmania manufacturing = 0.8%
Tasmania electricity = 0.45%
Tasmania residential = 0.02%
Tasmania commercial & services = 0.02%
By end use regardless of location:
Total residential = 30.1%
Total manufacturing = 28.0%
Total electricity generation = 24.7%
Total commercial & services = 17.2%
By state regardless of end use:
Victoria = 53.3%
NSW = 25.0%
SA = 20.5%
Tasmania = 1.3%
The above is just all raw data on an annualised basis and is Australian Government statistics as the source. It's simply different ways of looking at the same thing - where it goes, what it's used for etc.
As with most things however, dig a bit deeper and detail differs from the big picture and that detail is where any shortfall in supply will bite.
Manufacturing consumption is pretty much constant year round. Meanwhile total gas consumption for all uses during winter routinely runs at well over double the level of summer with the difference being driven by space heating and electricity generation.
Victorian space heating alone is over 40% of total gas consumption across the 4 states on a cold winter day. Add in space heating in SA and NSW (gas space heating is relatively limited in Tas where electricity and wood fires are dominant) and it's about 55% of peak day demand across all states is for space heating. Versus summer when space heating is of course zero or very close to it.
Gas use for electricity generation is also hugely variable since it is effectively a generation source of low priority. That is, it fills the gap between total consumption and the combined output of all other available sources (except diesel which is the actual last resort after gas).
Putting that into perspective, over the past 12 months gas-fired generation in Victoria ran at just under 7% of capacity. That is, average output was only 7% of peak output. Note that doesn't mean it isn't needed or that too much was built but rather, it just means that under most conditions other (cheaper) sources are sufficient. When they're not, gas is used. Illustrating that, the highest week accounted for 9% of all gas-fired generation for the year and the highest month accounted for 20.8%.
Just one problem.... Guess what week that was? And what month it was?
It was June yes, right in the middle of winter and the exact same time that gas use for space heating also peaks. The highest week for the record being 14 - 20 June 2021 inclusive.
Those comments about electricity are specifically for Victoria but it's broadly the same for the other states apart from NSW which is somewhat more balanced (though still higher than normal in winter). A bit of work to calculate so I haven't done them all but in short it peaks during the colder months in terms of total gas consumption for that purpose.
This chart shows gas (only) electricity generation across all NEM states (Qld, NSW, Vic, Tas, SA) for the past 12 months. There's the odd individually high day in summer yes, driven by hot weather and air-conditioning use, but overall it's higher in winter:
So gas use for electricity generation goes up in winter and gas use for space heating also goes up in winter and that's where any shortfall of supply will become apparent. It won't be a case of factories being shut all year but rather, it'll be an overall gas supply crunch when demand peaks during the colder months. That may take manufacturing down with it, but it's heating and electricity that primarily drive that seasonal spike.
Now I generally aren't keen on politics but given the circumstances I'll pose a question:
Would you like to be the Prime Minister, Premier or other person who orders the people to not use heating in the middle of winter? Or who rations electricity at that time?
Nor would I.
That reality, that peak day demand for gas is dominated by uses that directly impact the general public, will inevitably shape the politics of it all no matter what position anyone takes over climate change, fracking and so on.
None of that is to say that I'm advocating gas for the long term, to be clear I'm not keen there at all, but there's a practical need to take the necessary steps to maintain supply in the medium term and that means doing things that many aren't keen on. It won't just appear by magic so it's either produce more in the southern states (drilling, fracking), it's bring more gas from Queensland or the NT (drilling, fracking, pipelines, cancelling overseas contracts) or it's import LNG (terminal has to be built). Or we have a shortfall of supply and face the consequences of that.
Noting that any early exit of coal-fired generation will send gas demand up strongly, indeed even a simple breakdown poses a risk since less coal = more gas in the absence of having alternatives actually built and running.
The following figures are all as a % of total gas consumption across NSW, Vic, SA and Tas combined with ACT figures included in NSW:
By end use and state:
Victoria residential = 22.4%
NSW manufacturing = 12.1%
Victoria commercial & services = 11.8%
SA electricity generation = 11.8%
Victoria manufacturing = 11.2%
Victoria electricity generation = 7.9%
NSW residential = 5.3%
NSW electricity generation = 4.5%
SA manufacturing = 3.9%
NSW commercial & services = 3.0%
SA residential = 2.4%
SA commercial & services = 2.3%
Tasmania manufacturing = 0.8%
Tasmania electricity = 0.45%
Tasmania residential = 0.02%
Tasmania commercial & services = 0.02%
By end use regardless of location:
Total residential = 30.1%
Total manufacturing = 28.0%
Total electricity generation = 24.7%
Total commercial & services = 17.2%
By state regardless of end use:
Victoria = 53.3%
NSW = 25.0%
SA = 20.5%
Tasmania = 1.3%
The above is just all raw data on an annualised basis and is Australian Government statistics as the source. It's simply different ways of looking at the same thing - where it goes, what it's used for etc.
As with most things however, dig a bit deeper and detail differs from the big picture and that detail is where any shortfall in supply will bite.
Manufacturing consumption is pretty much constant year round. Meanwhile total gas consumption for all uses during winter routinely runs at well over double the level of summer with the difference being driven by space heating and electricity generation.
Victorian space heating alone is over 40% of total gas consumption across the 4 states on a cold winter day. Add in space heating in SA and NSW (gas space heating is relatively limited in Tas where electricity and wood fires are dominant) and it's about 55% of peak day demand across all states is for space heating. Versus summer when space heating is of course zero or very close to it.
Gas use for electricity generation is also hugely variable since it is effectively a generation source of low priority. That is, it fills the gap between total consumption and the combined output of all other available sources (except diesel which is the actual last resort after gas).
Putting that into perspective, over the past 12 months gas-fired generation in Victoria ran at just under 7% of capacity. That is, average output was only 7% of peak output. Note that doesn't mean it isn't needed or that too much was built but rather, it just means that under most conditions other (cheaper) sources are sufficient. When they're not, gas is used. Illustrating that, the highest week accounted for 9% of all gas-fired generation for the year and the highest month accounted for 20.8%.
Just one problem.... Guess what week that was? And what month it was?
It was June yes, right in the middle of winter and the exact same time that gas use for space heating also peaks. The highest week for the record being 14 - 20 June 2021 inclusive.
Those comments about electricity are specifically for Victoria but it's broadly the same for the other states apart from NSW which is somewhat more balanced (though still higher than normal in winter). A bit of work to calculate so I haven't done them all but in short it peaks during the colder months in terms of total gas consumption for that purpose.
This chart shows gas (only) electricity generation across all NEM states (Qld, NSW, Vic, Tas, SA) for the past 12 months. There's the odd individually high day in summer yes, driven by hot weather and air-conditioning use, but overall it's higher in winter:
So gas use for electricity generation goes up in winter and gas use for space heating also goes up in winter and that's where any shortfall of supply will become apparent. It won't be a case of factories being shut all year but rather, it'll be an overall gas supply crunch when demand peaks during the colder months. That may take manufacturing down with it, but it's heating and electricity that primarily drive that seasonal spike.
Now I generally aren't keen on politics but given the circumstances I'll pose a question:
Would you like to be the Prime Minister, Premier or other person who orders the people to not use heating in the middle of winter? Or who rations electricity at that time?
Nor would I.
That reality, that peak day demand for gas is dominated by uses that directly impact the general public, will inevitably shape the politics of it all no matter what position anyone takes over climate change, fracking and so on.
None of that is to say that I'm advocating gas for the long term, to be clear I'm not keen there at all, but there's a practical need to take the necessary steps to maintain supply in the medium term and that means doing things that many aren't keen on. It won't just appear by magic so it's either produce more in the southern states (drilling, fracking), it's bring more gas from Queensland or the NT (drilling, fracking, pipelines, cancelling overseas contracts) or it's import LNG (terminal has to be built). Or we have a shortfall of supply and face the consequences of that.
Noting that any early exit of coal-fired generation will send gas demand up strongly, indeed even a simple breakdown poses a risk since less coal = more gas in the absence of having alternatives actually built and running.
Last edited:
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Adding to the previous post, where the gas is used.
The following figures are all as a % of total gas consumption across NSW, Vic, SA and Tas combined with ACT figures included in NSW:
By end use and state:
Victoria residential = 22.4%
NSW manufacturing = 12.1%
Victoria commercial & services = 11.8%
SA electricity generation = 11.8%
Victoria manufacturing = 11.2%
Victoria electricity generation = 7.9%
NSW residential = 5.3%
NSW electricity generation = 4.5%
SA manufacturing = 3.9%
NSW commercial & services = 3.0%
SA residential = 2.4%
SA commercial & services = 2.3%
Tasmania manufacturing = 0.8%
Tasmania electricity = 0.45%
Tasmania residential = 0.02%
Tasmania commercial & services = 0.02%
By end use regardless of location:
Total residential = 30.1%
Total manufacturing = 28.0%
Total electricity generation = 24.7%
Total commercial & services = 17.2%
By state regardless of end use:
Victoria = 53.3%
NSW = 25.0%
SA = 20.5%
Tasmania = 1.3%
The above is just all raw data on an annualised basis and is Australian Government statistics as the source. It's simply different ways of looking at the same thing - where it goes, what it's used for etc.
As with most things however, dig a bit deeper and detail differs from the big picture and that detail is where any shortfall in supply will bite.
Manufacturing consumption is pretty much constant year round. Meanwhile total gas consumption for all uses during winter routinely runs at well over double the level of summer with the difference being driven by space heating and electricity generation.
Victorian space heating alone is over 40% of total gas consumption across the 4 states on a cold winter day. Add in space heating in SA and NSW (gas space heating is relatively limited in Tas where electricity and wood fires are dominant) and it's about 55% of peak day demand across all states is for space heating. Versus summer when space heating is of course zero or very close to it.
Gas use for electricity generation is also hugely variable since it is effectively a generation source of low priority. That is, it fills the gap between total consumption and the combined output of all other available sources (except diesel which is the actual last resort after gas).
Putting that into perspective, over the past 12 months gas-fired generation in Victoria ran at just under 7% of capacity. That is, average output was only 7% of peak output. Note that doesn't mean it isn't needed or that too much was built but rather, it just means that under most conditions other (cheaper) sources are sufficient. When they're not, gas is used. Illustrating that, the highest week accounted for 9% of all gas-fired generation for the year and the highest month accounted for 20.8%.
Just one problem.... Guess what week that was? And what month it was?
It was June yes, right in the middle of winter and the exact same time that gas use for space heating also peaks. The highest week for the record being 14 - 20 June 2021 inclusive.
Those comments about electricity are specifically for Victoria but it's broadly the same for the other states apart from NSW which is somewhat more balanced (though still higher than normal in winter). A bit of work to calculate so I haven't done them all but in short it peaks during the colder months in terms of total gas consumption for that purpose.
This chart shows gas (only) electricity generation across all NEM states (Qld, NSW, Vic, Tas, SA) for the past 12 months. There's the odd individually high day in summer yes, driven by hot weather and air-conditioning use, but overall it's higher in winter:
View attachment 142105
So gas use for electricity generation goes up in winter and gas use for space heating also goes up in winter and that's where any shortfall of supply will become apparent. It won't be a case of factories being shut all year but rather, it'll be an overall gas supply crunch when demand peaks during the colder months. That may take manufacturing down with it, but it's heating and electricity that primarily drive that seasonal spike.
Now I generally aren't keen on politics but given the circumstances I'll pose a question:
Would you like to be the Prime Minister, Premier or other person who orders the people to not use heating in the middle of winter? Or who rations electricity at that time?
Nor would I.
That reality, that peak day demand for gas is dominated by uses that directly impact the general public, will inevitably shape the politics of it all no matter what position anyone takes over climate change, fracking and so on.
None of that is to say that I'm advocating gas for the long term, to be clear I'm not keen there at all, but there's a practical need to take the necessary steps to maintain supply in the medium term and that means doing things that many aren't keen on. It won't just appear by magic so it's either produce more in the southern states (drilling, fracking), it's bring more gas from Queensland or the NT (drilling, fracking, pipelines, cancelling overseas contracts) or it's import LNG (terminal has to be built). Or we have a shortfall of supply and face the consequences of that.
Noting that any early exit of coal-fired generation will send gas demand up strongly, indeed even a simple breakdown poses a risk since less coal = more gas in the absence of having alternatives actually built and running.
Yes, some big political problems there , especially with the Greens holding the balance of power.
A big test for the incoming government. The Greens don't want new coal or gas mines but they may go for a reservation policy if they are really interested in keeping living costs down.
Will be interesting to watch how it plays out.
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It won't be hard to beat the previous government.
The now former Minister was comedy gold, saying this to a room full of people who all knew, or should have known, what was coming:
Australian Domestic Gas Outlook (ADGO) 2022 conference | Ministers for the Department of Industry, Science, Energy and Resources
Minister's Taylor keynote address at the Australian Domestic Gas Outlook (ADGO) 2022 conference
Less than six weeks later we had a full blown price shock in progress.
It would be funny if it wasn't so serious.
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As I said in the political thread it will be a real test of the Labor/Green/Teal relationship, as soon as they leave the starting blocks, winter is only weeks away.It won't be hard to beat the previous government.
The now former Minister was comedy gold, saying this to a room full of people who all knew, or should have known, what was coming:
Australian Domestic Gas Outlook (ADGO) 2022 conference | Ministers for the Department of Industry, Science, Energy and Resources
Minister's Taylor keynote address at the Australian Domestic Gas Outlook (ADGO) 2022 conferencewww.minister.industry.gov.au
Less than six weeks later we had a full blown price shock in progress.
It would be funny if it wasn't so serious.
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I see it more as an to highlight the previous government's failure to act on continuous notification/advice about what was foreseeable and what needed to be done. A legacy of 9 years price policy rather than supply policy has us where we are.
While we don't know who the new minister for Energy will be, surely he/she could not be as inept as their predecessors!
In relation to the grid, Labor has a stated commitment:
Labor’s Rewiring the Nation will invest $20 billion to rebuild and modernise the grid, in line with a blueprint already completed by the Australian Energy Market Operator and signed off by all governments.
However, Labor's energy security (electricity) policies are weak at best, and it may be timely for a relapse to occur early in their term so they begin to understand what fixes are essential for an orderly transition to their more-grand plan.
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What they need to do is establish an expert panel of scientists and engineers to design our future energy needs.
We can't continue to have energy systems designed by politicians, and although wind farms and solar panels will continue to spring up like mushrooms they will need to be integrated into the overall network so all the components work together efficiently.
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Another Victim of the price rises has arisen.
Weston energy has gone under.
From Yahoo Finance
Mick
Weston energy has gone under.
From Yahoo Finance
This will also affect Santos, who had lined up Weston energy as a potential buyer for its Narrabri gas project.
Mick
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Another one has also gone today.
Pooled Energy.
From the Australian Energy Regulator information released:
As an interim measure, customers of Pooled Energy will be automatically transferred to other retailers, namely Origin Energy and Energy Australia, effective immediately. This transfer has been arranged by the Australian Energy Regulator (government) and avoids consumers being left without an electricity supply.
Noting that there's no obligation on anyone to remain with Origin or EA for any set period, affected customers can choose any retailer they wish (including remaining with Origin / EA if that's their choice).
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The Australian Energy Regulator has today released the 2022-23 Default Market Offer (DMO) prices for SA, NSW and south-east Queensland.
Normally they would have been released at the beginning of may however this was delayed by order of the previous federal government.
www.aer.gov.au
For residential consumers:
NSW prices up 8.5% to 14.1% depending on region
South-east Queensland prices up 11.3%
South Australia up 7.2%
For small business:
NSW up 10.0% to 19.7% depending on region
South-east Queensland up 12.8%
South Australia up 5.7%
Note these are the DMO prices and that in practice the majority of consumers are on market offers set at a discount to the DMO which, in practice, is a maximum price not the typical price. So the above increases refer to maximum prices charged.
However due to the extreme cost issues in the industry at present, almost certainly the extent of price discounting will diminish such that the true increase in prices to consumers is far greater than the above.
There's also at least two retailers, LPE and Discover Energy, now actively encouraging customers to seek an alternative supplier. So it's all getting a bit interesting yes.
Normally they would have been released at the beginning of may however this was delayed by order of the previous federal government.
AER sets energy price cap to protect consumers
[no-lexicon]The Australian Energy Regulator (AER) has released its final determination for the 2022–23 Default Market Offer (DMO). The DMO is the safety-net price cap that ensures consumers are protected from unjustifiably high prices. From 1 July 2022, the DMO prices in New South Wales...
For residential consumers:
NSW prices up 8.5% to 14.1% depending on region
South-east Queensland prices up 11.3%
South Australia up 7.2%
For small business:
NSW up 10.0% to 19.7% depending on region
South-east Queensland up 12.8%
South Australia up 5.7%
Note these are the DMO prices and that in practice the majority of consumers are on market offers set at a discount to the DMO which, in practice, is a maximum price not the typical price. So the above increases refer to maximum prices charged.
However due to the extreme cost issues in the industry at present, almost certainly the extent of price discounting will diminish such that the true increase in prices to consumers is far greater than the above.
There's also at least two retailers, LPE and Discover Energy, now actively encouraging customers to seek an alternative supplier. So it's all getting a bit interesting yes.
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Hopefully it doesn't get too bad on the East Coast, with regard energy costs, that will have an across the board affect on inflation.
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It's going to get a whole lot worse before it gets better IMO.Another one has also gone today.
Pooled Energy.
From the Australian Energy Regulator information released:
As an interim measure, customers of Pooled Energy will be automatically transferred to other retailers, namely Origin Energy and Energy Australia, effective immediately. This transfer has been arranged by the Australian Energy Regulator (government) and avoids consumers being left without an electricity supply.
Noting that there's no obligation on anyone to remain with Origin or EA for any set period, affected customers can choose any retailer they wish (including remaining with Origin / EA if that's their choice).
The next issue will be defaults on power bills and how those who can least afford it now, will be able to afford it in the future.
I can see the Govt having to buy back power stations, sooner rather than later, they can't force companies to run something at a loss.
This is going to be a huge issue IMO.
https://www.smh.com.au/politics/fed...ojects-bandt-tells-labor-20220527-p5ap2g.html
Greens leader Adam Bandt says the party has a mandate to stop new coal and gas mines and warned the Labor government that it will use its balance of power in the Senate to introduce legislation to block new mines.
The Greens look set to quadruple their lower house representation by robbing the LNP of their Queensland seats of Brisbane and Ryan and booting Labor frontbencher Terri Butler from the seat of Griffith.
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There's no "official" list but it seems that at least 16 retailers have now withdrawn from supplying new customers so yeah, it's rapidly escalating.
It's the scenario myself and others saw coming years ago. Not trying to big note anyone there, just saying it has been coming a very long time and has long been apparent to many where it would end up.
In the absence of something drastic being done, well it's going to bring the nation to a crisis is my expectation. WA and Tas will just shrug their shoulders and carry on but for the rest it's a huge issue.
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Why is that the AEMO set the prices for 12 months?
In this volatile world, 12 months fixed price seems like something a business would need a huge level of margin to justify.
Mick
In this volatile world, 12 months fixed price seems like something a business would need a huge level of margin to justify.
Mick
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As a technicality AEMO doesn't set prices, it just operates.
AER, the Australian Energy Regulator and a completely separate organisation, sets the Default Market Offer for SA, NSW and south-east Qld.
Victorian state government sets the Victorian Default Offer for in Victoria.
Reason, ultimately = government decision to regulate the retail side of the market.
Noting that doesn't preclude anyone offering different prices but they're obliged to make the DMO / VDO available to anyone who requests it. That in practice makes it a price cap since nobody's likely to pay more than the regulated price, they're only going to take a market offer if it's cheaper.
Elsewhere it's somewhat simpler given that government is more directly involved.
A major issue of course is that if your selling price is fixed, and your buying price isn't, well you could blow yourself up financially yes. I foresee a lot of issues cropping up there with retailers finding it unprofitable to continue operations if present circumstances persist. If current market circumstances persist or worsen then I expect we'll see quite a fuss from the retailers (collectively) in the near future about the regulatory process.
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I saw stories about the synergies of solar power and farming in other material. This local example is very encouraging.
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By Hannah Jose and Olivia Calver
Posted 1h ago1 hours ago, updated 31m ago31 minutes ago
Tom Warren lets his sheep run between the solar panels.(ABC Rural: Hannah Jose)
Help keep family & friends informed by sharing this article
Sheep grazing under solar panels at farms in NSW's Central West have produced better wool and more of it in the four years since the projects began, according to growers.
Local graziers have labelled the set-up a "complete win-win", with the sheep helping to keep grass and weeds down so as not to obscure the panels.
In turn, the panels provided shade for the sheep and grass, and helped prevent the soil from drying out.
Wool broker Graeme Ostini, who has been grazing merino wethers at a solar farm near Parkes in a trial with the Parkes Show Society, said he had seen the benefits of running the animals under panels.
He said his sheep were slightly lighter stocked than the average in the district but were cutting an "amazing" amount of wool.
Mr Warren's sheep were able to graze almost all through the drought years thanks to condensation from the panels.(Supplied: Tom Warren)
He said he credited the good season and the solar panels for the improvement.
www.abc.net.au
Solar farm trial shows improved fleece on merino sheep grazed under panels
ABC Rural/
By Hannah Jose and Olivia Calver
Posted 1h ago1 hours ago, updated 31m ago31 minutes ago
Tom Warren lets his sheep run between the solar panels.(ABC Rural: Hannah Jose)
Help keep family & friends informed by sharing this article
Sheep grazing under solar panels at farms in NSW's Central West have produced better wool and more of it in the four years since the projects began, according to growers.
Key points:
- Sheep grazing on solar farm trials shows an increase in wool quantity and quality
- There are calls for more research on the co-location of agriculture and renewable energy
- A NSW government review of agriculture and renewable energy has received 100 submissions
Local graziers have labelled the set-up a "complete win-win", with the sheep helping to keep grass and weeds down so as not to obscure the panels.
In turn, the panels provided shade for the sheep and grass, and helped prevent the soil from drying out.
Wool broker Graeme Ostini, who has been grazing merino wethers at a solar farm near Parkes in a trial with the Parkes Show Society, said he had seen the benefits of running the animals under panels.
He said his sheep were slightly lighter stocked than the average in the district but were cutting an "amazing" amount of wool.
Mr Warren's sheep were able to graze almost all through the drought years thanks to condensation from the panels.(Supplied: Tom Warren)
He said he credited the good season and the solar panels for the improvement.
Merino sheep grazing under solar panels produce better wool, trial shows
Two farmers running merinos on solar farms in NSW's Central West say their sheep thrive under solar panels, while wool quality has increased.
www.abc.net.au
