Queensland Liquified Natural Gas exports commenced in early 2015. Historically, prior to this, gas markets in eastern Australia have been relatively stable. Conventional gas fields supplied large industrial users, business/residential – mass market – load as well as gas-powered generators at relatively low prices.
In this Chart of the week, we explore the gas demand by segment from 2014 to 2019. We also compare it to prices Victoria.
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Low carbon generation
AEMO has recently published the 2022 Integrated System Plan (ISP), which provides an energy transition roadmap for the National Electricity Market (NEM). This ISP focuses on the “Step Change” scenario, which reflects strong action on climate change leading to a step change reduction of greenhouse gas emissions, based on the...
Commercial and market outlook
The Victorian Big Battery (VBB) in Geelong, Victoria, is currently the largest commissioned battery in the NEM at 300 MW/450 MWh. In Q2 2022, VBB, and its owner Neoen, posted an estimated AEMO wholesale net revenue of just over $13 million for the three-month period. It is important to note...
Commercial and market outlook
Last year it was difficult to imagine that spot gas prices in Australia would hit unprecedented levels of more than $40-50/GJ, with AEMO capping the DWGM price at $40/GJ. By comparison, the DWGM only averaged $5.10/GJ last year. As was mentioned by Energy Market Intelligence Manager Mohsin Ali in the...
Power and gas networks
Australia’s gas markets are in the middle of an unprecedented price spike. Current prices in the Victorian Declared Wholesale Gas Market (DWGM) have been tracking in the $20-40/GJ range since early May 2022, with prices hitting $50/GJ on 30 May. Prices in the other gas hubs of Sydney and Brisbane...
Commercial and market outlook
In 2017, the Victorian Government legislated a state target of net-zero greenhouse gas emissions by 2050. Since then, short-term targets have been set in five-year increments, with the 2030 target being to cut emissions by 45-50% below 2005 levels. The Government is currently consulting on the 2035 target, which must...
Low carbon generation
The Victorian Government launched Australia’s first offshore wind targets as part of its transition towards a net-zero emission future. According to the target, 9GW of offshore wind will be installed by 2040, nearly quadrupling the total wind capacity in VIC. In this Chart of the week, we dive into the...
Commercial and market outlook
Is the NEM getting harder to control with rising variable renewable generation and distributed photovoltaic growth? AEMO’s balancing of scheduled supply is critical to ensure the system remains stable and wholesale prices work efficiently. This Chart of the week briefly examines if the NEM is “on schedule” to meet this...
Commercial and market outlook
A by-product of how market boundaries are defined, loop flows are phenomena in electricity markets that manifest as flows going in one direction across parts of a network loop and goes the opposite way in other parts of the same network loop. Regardless of whether the market design is nodal...
