POWER INDUSTRY – AUSTRALIA

Energy prices double in year

roymorgansocial Leave a comment

Original article by Samantha Hutchinson, Michael Owen, Andrew White
The Australian – Page: 1 & 6 : 30-Jan-18

New figures show that the average wholesale spot energy price in South Australia has risen to nearly $A170 in January 2018, compared with $A84 during the same period in 2017. The average spot price in Victoria has risen from just $A62 to $A139 over the last 12 months. Energy experts warn that more power blackouts and electricity price hikes can be expected due to the state governments’ focus on renewable energy targets rather than ensuring a reliable baseload energy supply.

CORPORATES
GRATTAN INSTITUTE, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, VICTORIA. DEPT OF PREMIER AND CABINET, AUSTRALIAN POWER PROJECT, SOUTH AUSTRALIA. DEPT OF TREASURY AND FINANCE

Alinta’s plan to rattle AGL and Origin

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 13 & 23 : 16-Jan-18

Alinta believes that its purchase of Victoria’s Loy Yang B coal-fired power station for around $A1.2 billion can help it boost customer numbers. Alinta MD Jeff Dimery notes that it has around 800,000 to 900,000 customers at the moment, and that it is capable of coping with around two million customers. He says Alinta is still committed to expanding its renewable energy generation capacity, despite its purchase of Loy Yang B.

CORPORATES
ALINTA ENERGY (AUSTRALIA) PTY LTD, ENGIE SA, AGL ENERGY LIMITED – ASX AGL, ORIGIN ENERGY LIMITED – ASX ORG, ENERGYAUSTRALIA PTY LTD, CHOW TAI FOOK ENTERPRISES LIMITED, ECOGEN ENERGY, IFM INVESTORS PTY LTD

CET might not reduce power bills, says Sims

roymorgansocial Leave a comment

Original article by Ben Potter
The Australian Financial Review – Page: 7 : 17-Oct-17

The Australian Competition & Commission has released the interim report of its inquiry into electricity prices. The report concludes that electricity network costs were the main cause of a sharp rise in electricity prices over the last decade. Meanwhile, ACCC chairman Rod Sims says that although a Clean Energy Target could potentially contribute to downward pressure on wholesale electricity prices, this might be offset by the impact of renewable energy target subsidies on electricity prices for consumers.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, JACOBS GROUP (AUSTRALIA) PTY LTD, AUSTRALIA. OFFICE OF THE CHIEF SCIENTIST, FRONTIER ECONOMICS PTY LTD

AGL refuses to budge on Liddell

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith, Ben Potter
The Australian Financial Review – Page: 1 & 6 : 28-Sep-17

AGL Energy’ chairman Jerry Maycock has told the company’s AGM that selling the Liddell coal-fired power plant would be "challenging", while extending the ageing plant’s life would involve substantial costs. He also ruled out building a new coal-fired plant, arguing that such a plant may ultimately not be competitive as the cost of renewable energy and battery storage technology falls. Meanwhile, AGL CEO Andy Vesey is confident that partially replacing the Liddell plant’s output with renewables will not result in higher electricity prices. He also indicated that the Loy Yang A power station could be shut down ahead of schedule.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, MARKET FORCES

New threat to power supply

roymorgansocial Leave a comment

Original article by Mark Ludlow, Angela Macdonald-Smith
The Australian Financial Review – Page: 1 & 6 : 20-Sep-17

Consumers and businesses face further electricity price rises as operators of coal-fired power plants in New South Wales are having to pay higher prices for coal under new supply contracts. NSW power stations’ coal usage has also risen sharply in the wake of the closure of the Hazelwood plant in Victoria, while the state’s coal mines are struggling to meet demand as 80 per cent of their output is exported. Limited capacity on the NSW rail freight network is also a challenge for power generators, while there is an ongoing industrial dispute at Glencore’s coal mines.

CORPORATES
GLENCORE PLC, CONSTRUCTION, FORESTRY, MINING AND ENERGY UNION OF AUSTRALIA, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AGL ENERGY LIMITED – ASX AGL, ENERGYAUSTRALIA PTY LTD, DELTA ELECTRICITY AUSTRALIA PTY LTD, AUSTRALIAN ENERGY COUNCIL

Watchdog slams AGL on Liddell

roymorgansocial Leave a comment

Original article by Angela Macdonald-Smith
The Australian Financial Review – Page: 1 & 6 : 14-Sep-17

The Australian Competition & Consumer Commission had opposed the sale of Macquarie Generation – which owned the Liddell and Bayswater power stations – to AGL Energy in 2014. ACCC chairman Rod Sims believes that the $A1.5bn deal has contributed to the rising cost of electricity, noting that the competition regulator had warned of this at the time. AGL is under growing scrutiny over its plans to shut down the Liddell power station in 2022. The Federal Government recently set a deadline of 90 days for AGL develop a plan to replace the ageing plant’s output of 1,000 megawatts.

CORPORATES
AGL ENERGY LIMITED – ASX AGL, MACQUARIE GENERATION, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, ORIGIN ENERGY LIMITED – ASX ORG, ENERGYAUSTRALIA PTY LTD, AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. COMPETITION TRIBUNAL, VERTIUM ASSET MANAGEMENT, UBS HOLDINGS PTY LTD, ALCOA INCORPORATED

Turnbull’s power deal with AGL

roymorgansocial Leave a comment

Original article by David Crowe
The Australian – Page: 1 & 8 : 12-Sep-17

Prime Minister Malcolm Turnbull and Energy Minister Josh Frydenberg held talks with AGL Energy CEO Andy Vesey regarding the Liddell coal-fired power station on 11 September. Vesey agreed to a 90-day deadline to develop a plan to replace the ageing power station’s output. He will also put a proposal to the AGL board to sell the power station or keep it open for five years beyond its slated shutdown in 2022. The Australian ­Energy Market Operator has estimated that an extra 1,000 megawatts of electricity generation will be needed to offset the closure of Liddell.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, AGL ENERGY LIMITED – ASX AGL, AUSTRALIAN ENERGY MARKET OPERATOR LIMITED, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, AUSTRALIA. OFFICE OF THE CHIEF SCIENTIST

Energy chiefs forced to reveal cheaper plans

roymorgansocial Leave a comment

Original article by Mark Ludlow, Angela Macdonald-Smith
The Australian Financial Review – Page: 5 : 10-Aug-17

Prime Minister Malcolm Turnbull has secured an in-principle agreement with the CEOs of seven major power retailers to address the rising cost of electricity. Electric utilities will be required to disclose to customers on discount plans how much they will pay if they do not switch to an alternative plan when the discount period ends. The Australian Energy Market Commission estimates that the electricity contracts of about 50 per cent of customers have expired. Snowy Hydro CEO Paul Broad notes that some consumers miss out on lower rates because they simply never switch electricity suppliers.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, AUSTRALIAN ENERGY MARKET COMMISSION, SNOWY HYDRO LIMITED, AUSTRALIA. DEPT OF THE TREASURY, AUSTRALIA. DEPT OF THE ENVIRONMENT AND ENERGY, ORIGIN ENERGY LIMITED – ASX ORG, AGL ENERGY LIMITED – ASX AGL, POWERSHOP AUSTRALIA PTY LTD, RED ENERGY PTY LTD, LUMO ENERGY AUSTRALIA PTY LTD, AUSTRALIAN ENERGY COUNCIL

Coal plants hold key to ‘cheap energy, CO2 cuts’

roymorgansocial Leave a comment

Original article by Ben Potter
The Australian Financial Review – Page: 5 : 28-Jul-17

Engineers from GE argue that it would cost between $A57m and $A114m to retrofit Australia’s existing coal-fired power stations to produce more electricity and reduce their greenhouse gas emissions. They estimate that these plant could generate an additional 1,000MW to 1,500MW while cutting their carbon emissions by about 19 million tonnes. Australia’s remaining coal-fired power stations are slated for closure by 2050.

CORPORATES
GENERAL ELECTRIC COMPANY, ENERGYAUSTRALIA PTY LTD, AUSTRALIA. OFFICE OF THE CHIEF SCIENTIST, TESLA INCORPORATED, NEOEN, DEAKIN UNIVERSITY, MINERALS COUNCIL OF AUSTRALIA

Sims urges energy price competition

roymorgansocial Leave a comment

Original article by Ben Potter
The Australian Financial Review – Page: 3 : 27-Jul-17

Australian Competition & Consumer Commission chairman Rod Sims says state governments have contributed to the spike in electricity prices over the last decade. He cites factors such as appeals against the Australian Energy Regulator’s decision to reduce electricity network tariffs, mergers between electricity retailers and generators, and high solar feed-in-tariffs. Sims has also called for measures to curb the market dominance of established electricity retailers, such as making it easier for more companies to enter the market.

CORPORATES
AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, AUSTRALIAN ENERGY REGULATOR, AUSTRALIAN ENERGY MARKET COMMISSION