Major parties in NSW taking charge on solar and storage ahead of election
Substantive clean energy announcements from both the New South Wales Government and the Opposition this weekend show that both major parties have recognised the importance of the issue to voters ahead of the state election next month, the industry’s peak body said today.
Clean Energy Council Chief Executive Kane Thornton said the major parties should be congratulated for proposals that have embraced solar and batteries as one of the most effective ways to transform our energy system to one that is cheaper, cleaner and more reliable.
“The zero-interest loans of up to $15,000 for solar and storage systems proposed by the government would provide people with the means to store energy from the sun, for use when it is most needed. As with other renewable energy technologies, one of the biggest barriers for consumers in taking up energy storage is the up-front cost,” Mr Thornton said.
“NSW Labor’s strong commitment to support an additional half a million households in the state with solar rebates of up to $2200 per household over the next decade will also ensure a vibrant industry and provide expanded opportunities for solar businesses and installers.
“It is very important that the announced programs contain appropriate safeguards to ensure the systems that are being installed are of a high standard of safety and quality. This will be an extremely important element of both programs, and we look forward to working with whoever wins the next election to ensure that the safety of consumers is of the highest priority.
“The announcements from the government and the Labor Party are in line with the policy directives released by the Clean Energy Council last year.
“These policies are a great start, and we look forward to more announcements in the lead-up to the election,” he said.
Source: Clean Energy Council
West Wyalong Solar Farm
Lightsource BP’s proposed West Wyalong Solar Farm has been placed on exhibition by the NSW state government. The proposal is for a 90 MW AC solar farm, with energy storage and associated infrastructure. The project has an estimated capital investment value of $136.66mil, and should create 350 construction jobs and 3 operational jobs.
Contact Energy considers a retail Green Bond offer
Contact Energy Limited (“Contact”) has today announced that it is considering making an offer of up to $100 million of unsecured, unsubordinated fixed rate Green Bonds (“Green Bonds”) to institutional investors and New Zealand retail investors.
The Green Bonds are expected to have a maturity date of 15 August 2024. It is expected that full details of the offer will be released in the week beginning 18 February 2019, when the offer is anticipated to open.
Contact has a corporate credit rating from S&P Global Ratings of BBB (stable). The Green Bonds are expected to be assigned a long-term credit rating of BBB.
Proceeds from the proposed offer will be used for the financing of renewable generation and other eligible assets in accordance with Contact's Green Borrowing Program Framework.
ANZ Bank New Zealand Limited, Bank of New Zealand and Deutsche Craigs Limited have been appointed as Joint Lead Managers for the proposed offer.
Investors can register their interest in the proposed offer by contacting one of the Joint Lead Managers using the contact details listed below, or their usual financial advisor. Indications of interest will not constitute an obligation or commitment of any kind.
No money is currently being sought and no applications for the Green Bonds may be accepted or money received until the offer opens and investors receive a terms sheet. If Contact offers the Green Bonds, the offer will be made in accordance with the Financial Markets Conduct Act 2013 as an offer of debt securities of the same class as existing quoted debt securities. The Green Bonds are expected to be quoted on the NZX Debt Market.
Source: Contact Energy
NSW Government gives green light for work to start on Snowy 2
Deputy Premier and Minister for Regional NSW John Barilaro and the Minister for Planning Anthony Roberts today announced approval for exploratory works for the Snowy 2.0 project.
Deputy Premier and Member for Monaro John Barilaro made the announcement at the Snowy Hydro Discovery Centre in Cooma, giving the green light from the state government for exploratory works to begin on the project.
“Snowy Hydro is an iconic, Australian success story, part of the fabric of our nation and of the community here in the Snowy Mountains,” Mr Barilaro said.
“We’ve taken the success of the existing scheme to new heights, with a massive $4 billion for infrastructure for in the bush following the transfer the NSW Government’s share of Snowy Hydro to the Commonwealth.
“Every single cent of that money is going to rural and regional NSW, and these communities will also reap the benefits associated with the extension of the existing scheme with 2000 jobs expected to be created during peak construction.
“Snowy 2.0 involves expanding the existing Snowy Scheme with the construction and operation of a new pumped hydro power station.
“It could increase the generation capacity of the existing Snowy Scheme by almost 50 per cent and provide 350,000 megawatt hours of large-scale storage capacity for the National Energy Market,” he said.
Minister for Planning Anthony Roberts said the approval would allow exploratory works to investigate the underground conditions at the proposed location for a power station cavern.
“Snowy Hydro Limited sought approval to construct a 3.1km tunnel and supporting infrastructure, as part of the Exploratory Works for Snowy 2.0,” Mr Roberts said.
“The Department of Planning and Environment has undertaken a rigorous assessment of the proposal, taking account of environmental, social and economic impacts, of community and stakeholder submissions and advice from other government agencies.
“Snowy 2.0 is ‘critical’ significant state infrastructure because of its potential to contribute to the future security and reliability of our energy system, and to deliver associated economic and broader environmental benefits. This approval allows essential geological information to be gathered for the detailed design of the underground power station,” he said.
Mr Roberts said approval of the project was subject to strict conditions to address concerns about impacts on Kosciuszko National Park.
“Under the conditions of approval, Snowy Hydro is required to pay $10.5 million to offset the impacts of the exploratory works project on the national park.
“These funds would be used by the National Parks and Wildlife Service (NPWS) to improve catchment health and to support the National Park’s unique environmental, heritage and recreational value,” he said.
Other conditions of approval for include:
- Detailed management plans to minimise traffic, water, biodiversity and heritage impacts and manage rehabilitation of the disturbed areas;
- Strict measures for the management of works involving the placement of material in Talbingo Reservoir;
-The provision of new recreational facilities at the Talbingo Reservoir if current areas are impacted by the project;
- Notifications to the community about road users on the local networks and water users on the Talbingo Reservoir;
- Rehabilitation following decommissioning.
Snowy Hydro will be submitting an Environmental Impact Statement (EIS) later this year for the Snowy 2.0 main works involving the construction of an underground power station with a generating capacity of around 2,000 megawatts and approximately 27km of power waterways linking the existing Tantangara and Talbingo Reservoirs.
The Snowy 2.0 main works EIS will be publicly exhibited to provide the community with an opportunity to comment.
Source: NSW Government
Walla Walla Solar Farm
Location: Approximately 4.3 km north-east of the town of Walla Walla in NSW
Capacity: 300 MW
Developer: Bison Energy
LGA: Greater Hume
Estimated cost: $450mil
Employment: 200 construction jobs and 3 operational jobs
Description: The solar farm would occupy around 614 hectares of rural land currently used for primary production (cropping and grazing). The proposal infrastructure includes solar arrays, trackers, modules, invertors, a substation, underground cabling, security fencing and a cable run to connect the solar farm to TransGrid’s 330 kV line. The proponent does not intend to install a battery storage facility at this time but may consider adding one in the proposal in future years.
Contact: Simon Zhang
Tel: (03) 9830 6616
Wind farm submissions closed - next steps being finalised
Submissions are now closed on Kaimai Windfarm Ltd’s proposed wind farm project.
Overall number of submissions
Overall Hauraki District Council received 220 submissions on the proposal, of which 57 were in support and 157 were opposed to the idea. Waikato Regional Council submissions totalled 143, with 96 against and 42 in support of the proposal. Around 11 submissions were sitting on the fence without leaning one way or the other.
Next steps being finalised
The next steps in the process are now being finalised but will likely include some pre-hearing meetings to try to reach some agreement and narrow down the issues to be heard at a later hearing. The hearing itself is expected to take place before the middle of the year and will give submitters the opportunity to present their views verbally to independent commissioners who will be appointed by both councils to make a decision on the proposal.
There is also a possibility the applicant may apply for direct referral to the Environment Court. In this case the hearing would be held there and the decision would be made by the Environment Court without the involvement of Council appointed commissioners.
Resource consent applications lodged last year
Kaimai Windfarm Ltd lodged resource consent applications with Hauraki District Council and Waikato Regional Council in July last year to establish and operate a wind farm. The proposed farm would have the capacity to provide an estimated 400GWH of power per annum to the national grid.
The applications, which are being processed jointly by the two councils, cover the proposed construction of 24 large scale wind turbines over 1304 hectares near Rotokohu Road on the northwestern area of the Kaimai Ranges, south of Paeroa. Seven of the proposed turbines would be 180 metres high (to blade tip standing upright) and 17 of them would be 207 metres high. Other proposed structures include a substation, two lattice transmission towers, two overhead power lines, and 18km of on-site roading. An on-site quarry to supply material for the roads is also proposed. The applications also cover the removal of vegetation and earthworks associated with the construction phase of the project.
Source: Hauraki District Council
H/Cell Energy commended by Australian Energy Minister
H/Cell Energy Corporation (OTCQB-HCCC) (“HCCC”), a company that designs and implements clean energy solutions featuring hydrogen and fuel cell technology, announced that through its Australian subsidiary, The Pride Group www.thepridegroup.com.au it has been commended on a solar and battery installation by the Queensland Australia Energy Minister, the Honorable Dr. Anthony Lynham.
The installation takes advantages of the government energy incentives that have been recently created by the Queensland Government for end users who implement solar and battery storage solutions. The program has been widely acclaimed and the opportunities to design and install these clean energy solutions are substantial in the Australian State of Queensland.
Steve Mullane, Managing Director of The Pride Group, commented, "We are very pleased to be recognized for our renewable energy efforts by the Queensland Energy Minister. It validates the commitment the Queensland Government has towards clean energy. In Australia both Federal and State Governments are investing heavily into renewable energy and storage solutions. The driving force is to reduce reliance on an aging grid and coal fueled power stations. The Pride Group is well positioned to benefit from this high growth market especially due to our existing relationships with The Department of Natural Resources, Mines and Energy as well as Energy Queensland. We hope to provide a number of installations as well as introduce hydrogen and fuel cell technology with our advanced clean energy solutions.”
Source: H/Cell Energy Corporation
Collaboration key in management of generator technical performance standards rule change
Ahead of the rule change for generator technical performance coming into effect on 1st February, there was concerted effort and collaboration within the industry to assist many new generation projects already in advanced stages of the connection application process.
One of AEMO’s functions as the system operator is to work with electricity network owners and market participants to establish the correct level of technical performance proposed for new generating facilities. These standards ensure system security is maintained as our power system continues to change and evolve, driven by new technologies, consumer engagement, and ageing infrastructure.
In response to these changes, one of the recent National Electricity Market (NEM) initiatives to help our power system adapt was to establish new rules for generator technical performance, allowing AEMO to manage the security of the electricity supply more effectively. The new performance standards are part of the National Electricity Rules that AEMO, network owners and market participants use to manage the connection of new generators to the NEM - the connection process is available here, and a comprehensive guide to how this assessment process is applied here.
The transition period ahead of this rule change ended on 1st February and there were nearly 50 projects, including major renewable energy initiatives, across the NEM (with a volume of approximately 4.2GW in total) that were able to finalise an agreed Generator Performance Standard (GPS) ahead of the transition period ending. If a performance standard had not been agreed on time, the transition to the new rules could have had major implications for many of these investments.
AEMO was in continuous contact with providers and developers alike during the transition, and all stakeholders worked tirelessly to avoid unnecessary project delays. The management of the rules change was a notable success for the vast energy transition currently being experienced across the NEM, and a testament of AEMO’s proactive support for Australia’s renewable energy integration.
Bill reductions to flow from proposed electricity interconnector
- Project EnergyConnect new name for proposed SA-NSW interconnector
- Independent modelling estimates savings for residential and business customers
- Improved state and national electricity network and energy security
Power customers in South Australia and New South Wales will benefit from electricity bill reductions if a new interconnector between the two states is built.
Bill reductions are just one of the major benefits outlined in a final report into building a new interconnector, which has been publically released by ElectraNet today.
ElectraNet Chief Executive, Steve Masters said since the release of the project’s draft report in June 2018, further modelling has found that the benefits to customers of building an interconnector between South Australia and New South Wales is expected to be even greater than originally identified.
“The latest independent modelling has found that a typical residential power bill in South Australia would reduce by about $66 per year while small business customers would receive an annual saving of $132,” Mr Masters said.
“Residential customers in New South Wales would benefit from a $30 annual bill reduction and small businesses would receive savings of $71 each year.
“It’s not just bill payers who would benefit from the project, there are also significant benefits to state and federal economies and the national energy grid.
“The new interconnector would also lower wholesale electricity costs in both states, improve network and energy security, and support Australia’s energy transformation towards a low carbon emissions future.”
The project is subject to obtaining all necessary approvals, including those required from the Australian Energy Regulator.
If approved, the interconnector would be built in partnership between South Australian transmission network owner and manager ElectraNet and TransGrid, operator and manager of New South Wales’ main high voltage transmission network.
The interconnector would follow a 900 kilometre route between Robertstown in South Australia and Wagga Wagga via Buronga in New South Wales, with a small connection to Red Cliffs in north west Victoria.
Independent modelling estimates the project would generate more than 1000 jobs across both states during construction of the interconnector.
ElectraNet and TransGrid have also today jointly announced the interconnector project’s official name – Project EnergyConnect. A dedicated project website has gone live today to provide helpful information to stakeholders and the wider community and encourage engagement with the project.
“Undertaking an energy project of this significance is an exciting prospect and we’re confident our expertise and experience will ensure Project EnergyConnect can be successfully delivered,” Mr Masters said.
“ElectraNet has been conducting pre-approval works which have been made possible through South Australian Government funding and this has put us in a good position to start works as quickly as possible should Project EnergyConnect be approved.
“We look forward to receiving the regulator’s final determination, which we anticipate will occur around the middle of this year.”
TransGrid Chief Executive Officer Paul Italiano said Project EnergyConnect would play a key role in delivering energy security and better consumer outcomes in both SA and NSW.
“Project EnergyConnect will be a key plank in developing a more connected National Electricity Market, with significant benefits through access to more energy supply and increased competition in the market,” Mr Italiano said.
“As the provider of an essential service TransGrid recognises that we have an obligation to meet community expectations around safe, secure and reliable power at the lowest possible cost.”
To view the Project EnergyConnect’s new website and for more information visit www.projectenergyconnect.com.au
AEMO Quarterly Energy Dynamics – Q4 2018
Highlights for Q4 2018 include:
Record wholesale electricity and gas prices despite low demand
- Quarterly average spot gas prices were the highest on record in Victoria’s Declared Wholesale Gas Market (DWGM) and the Short Term Trading Market (STTM) in Adelaide and the second highest on record in the Brisbane and Sydney STTMs, and the Gas Supply Hub (GSH).
− The increase in gas prices in AEMO-operated markets has been influenced by: record high daily pipeline deliveries to Curtis Island for LNG export (3,583 TJ/day); comparatively high NEM electricity prices; and reduced supply from Longford compared to Q4 2017 (-29%), which was offset by lower gas-powered generation (GPG) demand. These domestic gas price results occurred despite a 33% drop in international Brent prices (oil) and a related fall in LNG netback pricing.
- Quarterly average NEM spot electricity prices were $82-96/MWh, which is the highest Q4 on record in all regions except Tasmania. These high electricity prices were notable because they occurred despite: average mainland operational demand for the quarter falling to its lowest level since 2002; and a lack of high spot prices above $300/MWh.
- A combination of shorter and longer-term factors has contributed to these electricity price outcomes:
− In the shorter-term, the downward trend in output from baseload and mid-merit gas powered generation (GPG) in 2018 has contributed to higher prices. Between Q4 2017 and Q4 2018, there was an approximately 50% reduction in GPG capacity offered below $100/MWh, influenced by comparatively higher gas prices as well as several extended outages (see Section 1.4.1).
○ Q4 recorded an increased incidence of gas playing a price setting role. GPG set the price 25% of the time in the NEM compared to the long-term average of 15%. GPG also set the price at higher levels: for example, when GPG set Victoria’s price it averaged $115/MWh compared to $91/MWh in Q4 2017.
− Other contributors include the structural shift of offers from black coal-fired generators to higher prices between 2014 and 2018, as well the progressive closure of approximately 4,000 MW of coal-fired capacity between 2013 and 2017.
- Average mainland NEM operational demand during the quarter reduced to its lowest level since 2002. NEM average operational demand has been declining since 2009, influenced by: the decline of energy-intensive industries; increased uptake of rooftop PV; and higher uptake of energy efficiency improvements.
− South Australia set a new all-time minimum demand record of 599 MW at 1300hrs on 21 October 2018. This represents a continuation of the decreasing average daytime demand, primarily driven by increasing rooftop PV uptake.
Gas-powered generation falls and new renewables capacity enters the NEM
- Q4 2018 recorded the lowest quarterly average GPG on record for the current GPG fleet. GPG has declined steadily from Q4 2017, influenced by: increased penetration of variable renewable energy (VRE); rising domestic and international gas prices in 2018; and comparatively high hydro output in 2018.
- Over 3 GW of large-scale VRE commenced generation in the NEM during 2018, representing a 66% increase in VRE capacity from the start of the year. This contributed to a 34% decrease in spot Large-scale Generation Certificate prices over the quarter.
The full report is available at http://www.aemo.com.au/-/media/Files/Media_Centre/2019/QED-Q4-2018.pdf
Vestas partners with local manufacturing service provider for wind turbine assembly facility in Geelong
Global sustainable energy solutions provider Vestas today entered a partnership with Geelong-based manufacturing company, Marand Precision Engineering (Marand), for its new wind turbine manufacturing facility in Geelong. The partnership will allow Vestas to bring its world-class wind turbine assembly and testing capabilities to Victoria, thereby supporting and expanding the Victorian renewable energy sector.
Located at the former Ford Motor manufacturing site on the Princes Highway in Geelong, the facility is part of the Vestas Renewable Energy Hub (the Hub), a multi-disciplinary industry development initiative designed to support the Victorian Renewable Energy Target and Victoria’s New Energy Technologies strategy.
The facility will be responsible for making 4MW Drivetrains and Hubs and component testing for the Dundonnell Wind Farm and Berrybank Wind Farm projects, both of which were successful in the first Auction under the Victorian Renewable Energy Target. The facility will also support future wind projects in Australia.
“Vestas is committed to building new skills in the local work force in Geelong, and with our wind turbine component assembly and testing capability, we are helping build on Geelong’s background as a heavy manufacturing hub and use that to establish a renewable energy hub”, said Clive Turton, Vestas Asia Pacific President. “In Marand, we are partnering with an experienced manufacturing service provider with outstanding capabilities and skilled personnel. Their experience in automotive, aerospace, defence and rail industries meets all of our requirements around quality and technical expertise.”
Established in 1969, Marand is one of the largest manufacturing workshops in Australia. Under the agreement, Marand will supply facility space, personnel and equipment to meet Vestas’ manufacturing requirements. Vestas will provide testing equipment, assembly line layout, production training and supervision, and transportation of all components to the assembly area.
“We look forward to this strategic partnership with Vestas,” said Marand CEO Rohan Stocker. “Marand has decades of experience across a variety of industries, where our manufacturing expertise and business systems truly set us apart from our competitors. We look forward to adding value to the renewable industry, and this partnership will greatly help us expand our capability in this growing field. We are particularly proud to be able to carry out this work in the former Ford Geelong facility.”
Dundonnell Wind Farm owner Tilt Renewables and Berrybank Wind Farm project developer/owner Global Power Generation (GPG) (the international electricity generation subsidiary of Naturgy Energy Group) welcomed the announcement.
Chief Executive of Tilt Renewables, Deion Campbell, said that the Dundonnell Wind Farm is helping to drive the boom in new jobs in the renewable sector and accelerate the move toward a more sustainable, reliable and affordable energy future.
“As the largest customer of the new Renewable Energy Hub, Tilt Renewables is very pleased to be contributing to the creation of new jobs and training opportunities for people in the City of Geelong and south-west Victoria,” said Mr Campbell.
GPG also indicated its support for the Vestas Renewable Energy Hub as part of its Local Investment Plan, committed under the long-term power purchase agreement in the VRET 2017 Reverse Auction.
In addition to the wind turbine assembly facility, the Hub also includes four other initiatives:
- Establishing the Western Victorian Service Support Centre to service the growing Vestas turbine fleet in Western Victoria;
- Entering into a multi-year partnership with Federation University’s Ballarat Renewable Training Centre to deliver training and employment opportunities for wind turbine technicians;
- Establishing the Vestas Australian Main Component Logistics Centre in Geelong, a specialist facility for the largest turbine spare parts;
- Forming a partnership with Deakin University’s Carbon Nexus to research the next generation carbon fibre to use in making wind turbine blades longer, stronger and more productive.
Taminda Solar Farm
Location: Taminda, north-east of Tamworth in northern NSW
Capacity: 9 MW
Developer: Chan Abbey Holdings
Estimated cost: $8mil
LGA: Tamworth Regional Council
Description: The development footprint for the solar farm, to consist of appro0ximately 28,000 panels, is approximately 7.7ha and located on land of approximately 30 hectares that is subject of a separate proposal for an industrial development. It’s proposed to use the ‘PEG’ frame system for mounting. A 5 MW AC inverter is proposed for the development which will enable the solar farm to connect relatively easily to a more proximate 11kV substation feeder.
Contact: Jenny Rudolph
Tel: (02) 9367 2600
Wind turbines bring manufacturing jobs to Geelong
Wind power is creating new manufacturing jobs in Geelong with wind turbine components set to be assembled at the former Ford Motor manufacturing site.
Premier Daniel Andrews and Minister for Energy Lily D’Ambrosio visited the site today to announce that international company Vestas has partnered with local Victorian contractor Marand to build wind turbines for the Berrybank and Dundonnell wind farms.
The facility forms part of the Vestas Renewable Energy Hub (VREH) and will be responsible for the assembly of 100 turbine hubs and 50 drive trains for the 180-megawatt (MW) Berrybank Wind Farm and the 336MW Dundonnell Wind Farm. Full production of these wind turbine parts is expected to start in August.
The VREH will involve investment of approximately $3.5 million and directly employ over 20 employees. The project will train hundreds of local staff in wind turbine maintenance and see wind turbine component assembly in Australia for the first time in over 10 years.
Danish-headquartered Vestas is the world’s largest supplier of wind turbines and has been active in Victoria since 1999. It has been nominated as the preferred supplier of wind turbines for the two projects.
The development of the hub will help Dundonnell Wind Farm and Berrybank Wind Farm deliver on their local content commitment, supporting the Andrews Labor Government’s Victorian Industry Participation Policy.
The two new wind farm developments are supported by the Labor Government’s Victorian Renewable Energy Targets reverse auction.
Quotes attributable to Premier Daniel Andrews
“Victoria is the renewable energy capital of our nation and thanks to this new facility, we’re putting Geelong at the centre of it – this is great for jobs and great for Geelong.”
“Whether it’s the VRET or our Solar Homes Program, we’re driving down the energy costs for families, supporting local businesses and creating thousands of jobs.”
Quote attributable to Minister for Energy, Environment and Climate Change Lily D’Ambrosio
“This partnership shows how our transition to renewable energy is good for the environment and good for the economy – creating demand for local manufacturing skills and significant investment in the local supply chain.”
Quote attributable to Member for Geelong Christine Couzens
“I’m proud to see Geelong helping to lead the way in Victoria’s renewable energy future and benefiting from the local jobs and economic growth that flow from it.”
Quote attributable to Member for Lara John Eren
“The Ford factory was the centre of manufacturing in Geelong for so long, and it’s great to see it get a new lease on life building the energy technology of the future.”
Source: Victoria Government
Energy council welcomes Government decision on divestment bill
The Australian Energy Council welcomes the Government’s decision not to progress its big stick legislation through the current Parliament.
The Australian Energy Council’s Chief Executive Sarah McNamara said, “we will continue working with the Government and the Australian Competition and Consumer Commission on the many positive reforms proposed in its report to drive prices down.
“As the ACCC report acknowledged, the key to bringing down energy prices for Australian families and businesses is a stable policy framework that provides certainty for investors.
“The energy industry remains focussed on supporting measures that will stimulate investment and deliver cheaper power for Australian households and businesses.”
A copy of the Australian Energy Council’s submission on the divestment legislation and Frontier Economics assessment is available here.
Source: Australian Energy Council
BP Energy Outlook
The demand for energy is set to increase significantly driven by increases in prosperity in the developing world
The Energy Outlook considers different aspects of the energy transition and the key issues and uncertainties these raise. In all the scenarios considered, world GDP more than doubles by 2040 driven by increasing prosperity in fast-growing developing economies.
In the Evolving transition (ET) scenario this improvement in living standards causes energy demand to increase by around a third over the Outlook, driven by India, China and Other Asia which together account for two-thirds of the increase. Despite this increase in energy demand, around two-thirds of the world’s population in 2040 still live in countries where average energy consumption per head is relatively low, highlighting the need for ‘more energy’.
Energy consumed within industry and buildings accounts for around three-quarters of the increase in energy demand.
Growth in transport demand slows sharply relative to the past, as gains in vehicle efficiency accelerate. The share of passenger vehicle kilometres powered by electricity increases to around 25% by 2040, supported by the growing importance of fully-autonomous cars and shared-mobility services.
Primary energy increases
The world continues to electrify, with around three-quarters of the increase in primary energy absorbed by the power sector.
- Renewable energy is the fastest growing source of energy, contributing half of the growth in global energy supplies and becoming the largest source of power by 2040.
- Demand for oil and other liquid fuels grows for the first part of the Outlook before gradually plateauing. The increase in liquids production is initially dominated by US tight oil, but OPEC production subsequently increases as US tight oil declines.
- Natural gas grows robustly, supported by broad-based demand and the increasing availability of gas, aided by the continuing expansion of liquefied natural gas (LNG).
- Global coal consumption is broadly flat, with falls in Chinese and OECD consumption offset by increases in India and Other Asia.
In the Evolving transition scenario, carbon emissions continue to rise, signalling the need for a comprehensive set of policy measures to achieve ‘less carbon’.
The Outlook considers a range of alternative scenarios, including the need for ‘more energy’, ‘less carbon’ and the possible impact of an escalation in trade disputes.
The full report is available here: https://www.bp.com/en/global/corporate/energy-economics/energy-outlook.html
Memorandum of Understanding between the Australian Renewable Energy Agency and the AEMC
The Australian Energy Market Commission and the Australian Renewable Energy Agency have signed a Memorandum of Understanding to formalise cooperation on the broad program of work currently underway to facilitate innovation in Australia’s energy markets.
The MOU sets out a framework for coordination and information sharing to underpin collaborative projects such as the Distributed Energy Integration Program which aims to maximise the value of customer investments in distributed resources such as solar PV and battery storage.
More broadly the AEMC is contributing to ARENA’s work to promote renewable energy technologies by providing input into proof of concept trials to help us understand potential changes to rules and regulations that will be needed to accommodate a future with more renewables and demand response. At the same time, ARENA is sharing its expert insights with us as renewable energy technologies evolve and new business models develop. Information gained through ARENA’s proof of concept trials helps the AEMC’s consideration of potential changes to the regulatory framework and market development advice.
ARENA’s recent demand response trials with AEMO have shown that short procurement lead times can make it challenging for demand response providers to participate in the market’s strategic reserve mechanism. These findings informed the Commission’s conclusions to reinstate the long-notice RERT and are also being considered as part of the AEMC’s assessment of a proposal to enhance the Reliability and Emergency Reserve Trader (RERT).
The Chief Executives of the AEMC and ARENA will meet at least every six months.
Kidston pumped storage hydro project – commencement of early works programme
Genex Power Limited (ASX: GNX) (Genex or Company) is pleased to announce that it has entered into an agreement (Agreement) with the Joint Venture of McConnell Dowell/John Holland (MDJHJV), to immediately commence an early works programme on the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro or Project) at Genex’s Renewable Energy Hub at Kidston in North Queensland.
Pursuant to the Agreement, the MDJH-JV will commence work on an agreed programme of works to accelerate the development of the Project ahead of Financial Close which remains on track for H1 2019.
The early works programme will focus on work surrounding the hydraulic design and related activity for the hydro turbines, one of the longest lead time items in the K2-Hydro construction programme, and will be followed by preliminary electrical design work and other project preparation activities.
Commenting on the commencement of the K2-Hydro early works, CEO of Genex, James Harding, stated:
“Embarking on this early works programme with the MDJH-JV is a significant milestone for Genex as work gets underway on our biggest project which has been in planning for a number of years. Genex continues to work closely with Powerlink, the Queensland State Government, NAIF, ARENA, EnergyAustralia and other key stakeholders to finalise the remaining activities ahead of the Financial Close milestone.
The Kidston Pumped Hydro Project will play a vital role in facilitating and supporting the further penetration of renewable energy in the National Electricity Market.”
Source: Genex PowerView PDF