Why wholesale electricity prices swing so violently
Negative $1,000 per megawatt-hour at noon. Positive $15,000 per megawatt-hour by six in the evening. Same grid, same day, same summer. That is not a malfunction. That is the National Electricity Market doing exactly what it was designed to do — and that design deserves more scrutiny than it usually gets. I’ve been watching NEM […]
AGL Energy: coal’s biggest landlord trying to check out early
Around 9,400 megawatts. That is roughly the combined thermal capacity AGL Energy has operated across Loy Yang A in Victoria’s Latrobe Valley and Bayswater in New South Wales’s Hunter Valley — more coal generation than any other single corporate entity in the National Electricity Market. The honest read is that every strategic announcement AGL makes […]
The Safeguard Mechanism and heavy industry: who’s actually paying
Around 215 facilities. That is the number of sites currently covered by Australia’s reformed Safeguard Mechanism — the largest industrial emitters in the country, each required to hold enough credits to cover any net emissions above their declining baseline. Steel, cement, aluminium, LNG, chemicals. The policy has been running in its strengthened form since July […]
AGL versus Origin: two gentailers, two very different bets
Roughly $4 billion. That is the combined capital expenditure both companies have flagged for their respective transition programmes over the next few years, and yet AGL and Origin are deploying it in ways that look, on close inspection, almost opposite to each other. Same regulatory environment, same NEM, same rising wholesale prices — different calls. […]
Does Australia actually need nuclear power?
Fourteen years. That is the shortest credible timeline any serious analyst has put on a first Australian nuclear reactor reaching commercial operation, and even that figure assumes a regulatory framework that does not yet exist, a workforce that has not been trained, and a site that has not been selected. The Coalition’s nuclear policy, taken […]
Is the Capacity Investment Scheme quietly picking winners?
Thirty-two projects. That is roughly how many contracts the federal government had underwritten through the Capacity Investment Scheme by the time the scheme’s first major tranches closed. The dollar exposure runs well past $10 billion in revenue guarantees when you count both the capacity and variable renewable energy components. That is not a subsidy in […]
The Capacity Investment Scheme, explained
32 gigawatts. That is the headline target sitting at the centre of the federal government’s Capacity Investment Scheme — a contract mechanism that, depending on who you ask, is either the most sensible piece of energy market engineering in a decade or a subsidy programme dressed up in the language of market design. I’ve been […]
The Default Market Offer and your power bill
$1,984. That is roughly what a typical residential customer using around 4,000 kilowatt-hours a year pays annually on a standing offer in south-east Queensland under the current Default Market Offer framework. It is not the cheapest deal available, not by a long margin, and yet a substantial share of households remain on it. That single […]
How Renewable Energy Helps Australia’s Growth?
Renewable energy is now a popular power source in many countries. The recent increase in electricity prices, combined with the growing environmental concerns, has motivated many Australians to adopt this sustainable and clean alternative. To support the transition to a more sustainable and healthier lifestyle, Australia has invested heavily in renewable technologies. This change not only reduces carbon […]
Renewable Energy in Australia
Renewable energy is produced in Australia using abundant natural resources, such as biomass, solar and wind generation, and hydro-generation technologies. Over a third of Australia’s electricity is produced from renewable resources. The proportion of renewable energy is increasing, as per the global trend. Many leading Australian businesses are investing in renewable energy production. Cost savings […]