Jun-21 Energy Market News

EnergyByte
EnergyByte
Jun-21 Energy Market News

This month has been another action-packed month in the energy market. Below are the key highlights for the month:

Highlights

  • The Victorian Government has announced a second Victorian Renewable Energy Target auction to help the state achieve 100% renewable electricity for government operations by 2025
  • CS Energy has committed to replacing the damaged Callide C power station unit
  • Snowy Hydro claims the grid needs another five gas fired generators and that 100% renewables is unachievable in Australia
  • Yallourn power station had to shut down three generator units due to flooded mines on 15 June leading the VIC government to declare a state of emergency. The power station was able to return to three-quarter capacity at the end of the month
  • AGL has announced that its proposed business split will be structured as a demerger
  • Supermarket giant Aldi has reached 100% renewables six months ahead of target
  • TasNetworks has stated that larger 1,500MW marinus proposal will deliver the greatest economic benefit to the market
  • The number of companies looking to sell Australian solar assets continues to rise
  • Chris Bowen, Federal Labor spokesperson for climate change and energy, held aloft a solar panel telling the Coalition government to not be afraid of renewable energy

Renewables

  1. NSW calls for 8,000 MW of wind, solar and storage proposals (3 June) The NSW state Liberal government has called for 8,000 MW of new wind, solar and storage capacity in the New England region
  2. Pitt left in the dark about Kaban details (4 June) The Federal resources Minister, Keith Pitt did not receive details that the Kaban Energy Hub project would feature both a wind farm and big battery before vetoing a government loan
  3. Lightsource BP secures financing (4 June) A $330 million financing package has been secured by Lightsource BP to construct two new solar farms in NSW and Queensland
  4. 12MW floating wind turbine unveiled (4 June) A 12MW floating wind turbine concept which could dramatically change the face of offshore wind farms has been unveiled by researchers with US energy giant, General Electric
  5. Australia not considered conducive to growing big solar (4 June) A failure of investors to recognise the value of renewable energy companies in Australia, has led New Energy Solar to sell its two Australian solar farms
  6. Liddell site to house a solar hydro energy plant (9 June) A renewable solar-hydro energy plant will be built in the NSW Upper Hunter region, home of the former Liddell coal fired power station
  7. $22 Million detailed design & cost analysis (10 June) The proposed pumped hydro at Borumba Dam, near Noosa has been allocated $22 million for a detailed design and cost analysis
  8. Second Victorian VRET2 Auction (10 June) A second Victorian Renewable Energy Target auction (VRET) will be held by the Victorian Government to drive new investment and help the state achieve 100% renewable electricity for government operations by 2025
  9. Big Qld solar farm to be built by Sojitz (11 June) Japanese coal miner Sojitz has partnered with Eneos to build a 204MW solar farm in the Western Downs region of Queensland
  10. Commissioning complete for Glenrowan solar farm (11 June) Commissioning of the 149MW Glenrowan West solar farm has been completed and declared fully operational
  11. Fifteen month delay flagged for Forest Wind project (11 June) The ambitious Forest Wind project, one of Australia's largest wind energy project is anticipating significant delays of up to 15 months
  12. Gippsland adds solar and battery projects to renewables push (16 June) Victoria's Gippsland region is ploughing ahead with a push to add a 80MWh battery and a 80MW solar farm to its renewables sector
  13. Bass Strait massive offshore wind farm proposals (16 June) Brookvale Energy and Flotation Energy are looking at separate offshore wind farm projects in Bass Strait and Gippsland
  14. Alinta solar farm plan (30 June) Plans have been unveiled by energy utility Alinta, to build a 90MW solar farm near Port Headland, Western Australia
  15. Tesla discounts need for synchronous assets (30 June) Whilst slamming some of Australia's proposed markets reforms, global giant Tesla says there is no need for synchronous assets such as coal and gas generators in a zero emissions grid
  16. Full output move by Collector wind farm (30 June) The NSW Southern Tablelands 22MW Collector wind farm has been given the all clear to run at full capacity
  17. Boom time for new global offshore wind projects (30 June) New published figures show that more than 200GW worth of new offshore wind projects have been announced globally since 2020

Storage

  1. Battery storage is the new, clean peaker (1 June) Large-scale battery storage is shaping up to be the superior choice for electricity peaking services
  2. AGL eyes thermal storage for Liddell site (8 June) An innovative solar thermal project is being considered for the Liddell site in NSW as AGL pivots towards lower-carbon energy
  3. TransGrid construction underway (10 June) As part of the Queensland-NSW Interconnector project, four new capacitor banks will be constructed at TransGrid's Armidale substation
  4. Hybrid solar storage power plant for FRV (16 June) A 5 MW solar-storage hybrid power plant near Dalby in southern Queensland will be built by Fotowatio Renewable Ventures, a first for the solar developer
  5. Strong interest for proposed Canberra Big Battery (16 June) The planned Canberra Big Battery has seen strong interest from potential suppliers

Generation

  1. CS Energy commitment: Replace damaged Callide power station (1 June) CS Energy has committed to replacing the damaged Callide C power station unit.
  2. China thermal coal prices soar due to demand and weak supply (2 June) A global shortage of thermal coal has seen surging Chinese demand and volatile pricing
  3. Nuclear energy backed by Climate Change Authority (4 June) Grant King, Chairman Climate Change Authority has indicated his support for the introduction of nuclear energy for Australia's future energy mix
  4. EnergyAustralia considers pumped hydro plant build (4 June) Potential plans to build a large pumped hydro storage facility next to the Mt Piper coal generator are being considered by EnergyAustralia
  5. Hydrogen storage start-up backed by Ampol (8 June) A green hydrogen energy start-up has received backing from petrol and diesel supplier Ampol
  6. 200MW Broken Hill project announced by Hydrostor (10 June) Energy storage solution provider, Hydrostor has formally announced its 200MW Broken Hill A-CAES Project in NSW
  7. Snowy Hydro: Room for five gas generators (11 June) Government owned energy utility, Snowy Hydro believes there is room in Australia's main grid for another five gas generators and suggests 100 per cent renewables in Australia is unachievable
  8. Kurri Kurri cost blow out (11 June) The 660MW Hunter gas peaking plant proposed by the Morrison government is at risk of blowing the $600 million budget of public funds allocated
  9. Report finds EV-to-grid could provide 3 times peak electricity demand (11 June) A new report by BloombergNEF suggests that electric vehicles could supply three times Germany's peak power demand by 2040 if every one was fitted with vehicle-to-grid technology
  10. Qld owned coal power stations may become unprofitable (15 June) Analysis by the Queensland Conservation Council predicts the state's publicly owned coal fired power stations could start losing money by 2023-24
  11. Yallourn shut down due to flooded mines (15 June) Flooding at the Yallourn mine site has resulted in three out of four units of the coal generator being shut down
  12. Vic state emergency declaration following Yallourn damage (17 June) A state of emergency was declared in Victoria following mine flooding at the Yallourn power station and coal mine
  13. Power out for weeks in parts of Victoria following storms (22 June) Storm damage to Victoria's Dandenong Ranges has been described as "the worst in memory" resulting in some areas being without power for three and a half weeks
  14. Collinsville coal study process details not released (30 June) Morrison government denies access to the details of its Energy Minister's decision for feasibility study into proposed Queensland coal power station
  15. Angus Taylor faces push to remove regulatory blockages (30 June) The Federal energy and emissions reductions minister is facing increasing pressure to remove the regulatory blockages that are standing in the way of the development of Australia's first offshore wind projects
  16. Yallourn powers up (30 June) Following the "energy emergency" at Yallourn Power Station, EnergyAustralia has been granted regulatory approval to divert water away from the brown coal mine and return the power station to near three quarter capacity

Gas Market

  1. US fronts as Australia's new LNG exports rival (4 June) By exporting more LNG than Australia, the US has heightened competition among producers seeking to win market share with Asian gas buyers
  2. Woodside cost concerns on $16bn Scarborough project (9 June) Woodside Petroleum has defended the concerns over cost inflation of its $16bn Scarborough project
  3. Fears of government intervention (15 June) An escalating battle between big gas producers and users over east coast prices has resulted in Santos warning of government intervention
  4. Origin flags possible Beetaloo gas project (23 June) Production testing at the Beetaloo Basin gas project in the Northern Territory has begun as Origin Energy moves ahead
  5. Global natural gas supply concerns (26 June) Concerns around the world as natural gas markets come to the stark realisation that there isn't enough supply to go around

Financial

  1. Businesses split by AGL (2 June) The proposed split of AGL's energy business will be structured as a demerger
  2. Legal showdown between AGL & Greenpeace (4 June) AGL and environmental advocacy group, Greenpeace have battled it out in court concerning the use of AGL Energy logos by Greenpeace in one of their campaigns
  3. Genex Power's pumped hydro propped up by taxpayers (5 June) Questions have been raised about the value of taxpayers money following revelations that the $77 million Kidston pumped hydro project has received more public funding than its total capitol cost
  4. Denham Capital hires JPMorgan (7 June) In a bid to sell its $1 billion-odd portfolio of Australian and Asian energy assest, Denham Capital has engaged JPMorgan
  5. New solar farms nabbed by Bampu (8 June) New Energy Solar's Australian solar farms have been acquired by Thailand's Bampu
  6. Santos $5bn infrastructure assets eyed by UBS (8 June) Speculation is mounting that Santos is looking towards a selldown of about $5bn worth of oil and gas project infrastructure assets
  7. New Energy Solar exits Australia (8 June) New Energy Solar has sold its two Australian solar farms, Beryl and Manildra, and will focus entirely on the US market
  8. AGL fails in court claims against Greenpeace (9 June) AGL has failed in its attempt to prove that Greenpeace had breached copyright and trademark laws
  9. Record high for Australian carbon units (11 June) Surging past $A19 per tonne, the price of Australian Carbon Credit Units (ACCUs) have soared to record highs
  10. Meridian Energy considers sale of Australian assets (11 June) Meridian Energy is reviewing its position in the Australian market and is looking at either partial or full divestment of its local renewables projects and retailing business
  11. Tri-Star hunting for partner (15 June) A pioneer of Queensland's coal seam gas industry, Tri Star is looking for a potential partner to help develop the Gilbert Gully resource
  12. Buyout of majority stake by Solar Choice (16 June) A majority stake in the massive 2,000MW Bulli Creek solar project has been bought by solar farm developer, Solar Choice
  13. Itochu Corp partners with $1bn Australian hydrogen project (22 June) Seeking to wean itself off fossil fuels, Japan's Itochu Corp has entered into a partnership with Australian Future Energy to develop the $1bn Gladstone Energy and Ammonia Project
  14. Australian wind projects dry up (22 June) An inability to reach financial commitment as investors are spooked by lower electricity prices and ongoing grid challenges, is resulting in fewer new wind projects getting up and running
  15. Has Australia's LNG reached its peak? (23 June) Experts are concerned that the boom times for LNG projects in Australia are well and truly over
  16. Power & gas suppliers on notice (23 June) Heavy penalties are being flagged by the Australian Energy Regulator for both traditional electricity and gas suppliers and renewable generators for actions that risk undermining the stability of the energy sector
  17. Santos $2.6bn WA oil project go ahead (30 June) Despite mounting concerns among some investors and lenders, Santos is pushing ahead with its $2.6 billion oil project off the Western Australian coast
  18. As AGL demerger looms, investors nervous (28 June) Investors remain cautious as they await the finer details in the demerger of AGL's retail and supply arms
  19. AustralianSuper considers sale of stake in Ausgrid (30 June) Superannuation giant AustralianSuper has hired investment banks as it considers the sale of a multi billion dollar stake in Ausgrid
  20. Redflow eyes US battery market (30 June) Australian energy storage company Redflow has commenced a fundraising effort in a bid to enter the lucrative US battery market
  21. Batteries and more solar for Elliott Green Power (30 June) Large scale battery projects will be added by Elliott Green Power to its existing solar project whilst the company continues to search for buyers for all of its Australian assets
  22. Fortescue Bell Bay land deal inked (30 June) Fortescue Future Industries has partnered with TasPorts to build a proposed 250MW renewable hydrogen facility
  23. Yarranlea solar farm closes debt (30 June) The Risen Energy Yarranlea solar farm has closed a senior debt facility with Infradebt

Power Purchase Agreements

  1. Aldi 6 months ahead of renewable electricity target (16 June) The Australian arm of the supermarket giant, Aldi says it has hit the milestone target of powering all of its operations with 100 per cent renewable electricity, six months ahead of its schedule
  2. Telstra signs new wind farm PPA (16 June) Global Power Generation and Telstra have inked a Power Purchase Agreement underpinning the construction of a 58MW wind farm in Goulburn, New South Wales

Policy & Regulation

  1. Shared Marinus Link costs (1 June) The cost of the proposed $3.5 billion Marinus Link between Tasmania and Victoria will be spread more widely to customers following fast tracking of reforms to regulatory rules
  2. Connections Reform launch (1 June) The launch of the Connections Reform Initiative between AEMO and the Clean Energy Council has been announced
  3. New AEMC rule (4 June) The AEMC is introducing a rule to better identify emerging risks to power system security following requests in the wake of the black system event in South Australia in 2019
  4. ASIC crackdown on "greenwashing" practice (5 June) ASIC launches a crackdown on companies who attempt to "greenwash" or embellish their environmental credentials to court favour with investors
  5. AEMC draft rule (10 June) The final determination of AEMC's analysis of stakeholder feedback regarding access, pricing and incentive arrangements for distributed energy resources has closed with a release due next month
  6. Taylors favoured coal subsidy slammed (10 June) A key plank of proposed market reforms by the federal Coalition has been rejected by the majority of Australia's rapidly transitioning electricity industry
  7. Creation of $2bn Queensland renewable & hydrogen hub (11 June) A $2 billion clean energy fund has been announced by the Queensland government, aimed at supercharging the state's expansion of renewable energy and green manufacturing industries
  8. Bowen taunts Coalition government (16 June) Chris Bowen, Federal Labor spokesperson for climate change and energy, held aloft a solar panel telling the Coalition government to not be afraid of renewable energy in a nod to Morrisons's "lump of coal" moment
  9. Neoen: Abandon ESB reforms (16 June) Renewable energy developer, Neoen has called for Energy Security Board's proposed NEM reforms to be abandoned describing them as "rushed" and "unquantified".
  10. Gas giants shunned (19 June) Climate concerns are making life difficult and embarassing for gas producers as activists ramp up efforts to ideologically oppose fossil fuels
  11. WA green energy export project blocked (22 June) Citing a "clearly unacceptable" environmental impact, the federal government has blocked the proposed $53 billion Asian Renewable Energy Hub in the East Pilbara region of Western Australia
  12. Bidding practice investigation welcomed by small retailers (21 June) Confirmation that the ACCC will investigate potential uncompetitive bidding behaviour by gas generators has been welcomed by small electricity retailers
  13. Warning to Australia's solar industry (22 June) Australia's solar industry has been put on notice with Federal environment minister, Sussan Ley issuing a warning to develop an industry-wide approach to recycling PV panels
  14. Paradigm shift in electricity grid (22 June) AEMO Head, Daniel Westerman has noted the "paradigm shift" in Australia's electricity grids as a new report predicts Western Australia will receive 40 per cent of its generation capacity from small scale solar within the next decade
  15. Nats want government to underwrite coal fired power (30 June) The Nationals are on a campaign to compel the government to underwrite the Collinsville coal-fired power station in Queensland as a back-up to the regions growing solar energy sector
  16. Coal generators slam Taylors coal subsidy (30 June) Market rule changes proposed by Angus Taylor have received widespread condemnation by a group of Australia's biggest coal generators
  17. Preferred Western Victorian upgrades unveiled by AusNet (30 June) Hoping for revived investment in new renewable energy projects in Western Victorian, AusNet has unveiled its preferred route for a new transmission network upgrade
  18. Solar switch-off refinement promised by AEMO (30 June) AEMO is looking carefully at more sophisticated and transparent solutions to some of the issues related to shut down of rooftop solar
  19. TasNetwork pushes for largest capacity MarinusLink option (30 June) Published modelling by TasNetworks has found that a larger inter-connector will deliver greater economic benefits of the proposed MarinusLink interconnector
  20. AEMC rejects greater market control bid (30 June) Medium-scale generators will be forced to participate in the energy market alongside large-scale power stations after the AEMC rejected a proposal
  21. Corporate demand driving renewable growth (30 June) Strong growth for Australia's clean energy and voluntary carbon offset markets is forecast by the Clean Energy Regulator


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