We are delighted to present an update to our European Energy Handbook. The European Energy Handbook usually reports on regulatory, legal and market developments in the European energy sector. However, these are not usual times as the COVID-19 pandemic is creating significant health, social and economic challenges worldwide, forcing governments and businesses to critically assess the impact on their people, operations and governance. In many jurisdictions, governments have made available support schemes for businesses in an effort to mitigate the consequences of the pandemic on their businesses. In this special edition, we cover 52 jurisdictions across the globe. Read more
Following on from the four reverse auctions held between 2012 to 2016, the ACT Government has announced a new renewable energy reverse auction (the Reverse Auction) to “safeguard the delivery of sourcing 100% renewable electricity by 2020 from within the ACT or across the National Electricity Market”.
On 8 November 2019, the Minister for Climate Change (the Minister) determined that...
The Federal Government re-introduced its much-criticised ‘big stick’ energy laws this month after having abandoned the first iteration of the bill in December 2018. On 19 September the Government introduced the Treasury Laws Amendment (Prohibiting Energy Market Misconduct) Bill 2019 into the House of Representatives. The Bill introduces sector specific misconduct provisions into the Competition and Consumer Act for certain retail pricing, financial contracting and wholesale bidding conduct by electricity generators and retailers. The Bill also introduces radical remedies for contraventions of these provisions ... Read more
On 29 June 2019, Industry Super Australia (ISA) released its Modernising Electricity Sectors Discussion Paper (the Paper) which seeks to assist super funds in understanding and navigating the regulatory uncertainty in investing in the Australian electricity sector. More specifically, it aims “to provide decision-makers and other long-term investors with a framework for thinking through lumpy investment decisions” in the electricity sector. The release of this Paper is particularly timely given that, in June of this year, IFM Investors and ... Read more
Hydrogen is a hot topic in the global energy sector – and Australia could be a key player in the emerging international market.A recent report commissioned by the Australian Renewable Energy Agency (ARENA) examined the hydrogen export opportunities for Australia, estimating that by 2040 global demand could be valued at between $2.6 billion and $13.4 billion. The Australian hydrogen industry could have an associated domestic economic contribution of over $4 billion by 2040, as well as opportunities for ...
The ACCC’s selection of a ‘gateway’ model as the preferred data access model for implementation of the Consumer Data Right (CDR) in the energy sector is anticipated to align to the preferences of incumbent energy sector participants, but may not fully meet the expectations of potential new market players. In its Position paper: data access model … Read more
On 7 June Australian Energy Market Operator (AEMO) released a report by Aurora Energy Research looking at the likelihood that coal plants might close earlier than their anticipated closure dates. There has been much speculation about this, along the lines that the bow wave of renewable investment currently underway will push the coal plant out of the market due to the renewables’ low marginal cost of operation. If this were to happen in a way which might leave load unserved, naturally this would be of concern to AEMO. The report concludes that, based on AEMO’s “base case” assumptions, each of the coal plants currently operating has a positive net present value and would not be expected to close early on economic grounds (and might even close later). However, under other assumptions, Aurora found that some of the plants would have a ... Read more
The Australian Energy Market Operator’s (AEMO) December 2018 Western Australian Gas Statement of Opportunities and the March 2019 Gas Statement of Opportunities for Eastern and South-Eastern Australia provides a stark comparison between either side of the country. While it might be easy to point to Western Australia's abundant gas reserves, smaller population and favourable governmental policies as the reasons for WA's apparent good fortunes, the reality is more complicated than that. What is clear, as AEMO points out, is the need for much greater planning and coordination in the east coast market to avoid the ... Read more
In the lead up to this year’s federal election, both of Australia’s major political parties have released announcements regarding the establishment of an Australian hydrogen industry. A key focus of these announcements is the commitment to investing in ‘green’ hydrogen technologies, which through a process known as electrolysis, uses electricity generated from renewable sources to produce zero-emissions hydrogen by splitting water molecules into hydrogen and oxygen. The recent attention on green hydrogen technologies follows the earlier publication of reports by several key Australian bodies, including by CSIRO and ARENA, which... Read more