AEMO board refresh


Hey Reader, in today's edition:

  • AEMO board transitions
  • Tasmania weighs new Marinus costs
  • Getting orchestration to sing

AEMO names two new board members

The Australian Energy Market Operator has appointed two industry veterans to its board which is composed of both government and industry representatives.

Energy Efficiency Council CEO Luke Menzel leads the peak energy efficiency body’s efforts at the United Nations Framework Convention on Climate Change and is also Vice President of the Australian Sustainable Built Environment Council and Co-chair of the Australia-Germany Energy Efficiency and Decarbonisation Working Group.

Josef Tadich is Regional Director of Tesla Energy APAC. He has many years of experience in grid-scale renewable energy and storage, and began his career as an engineering officer with the Royal Navy. Since joining Tesla in 2015 he has worked on both residential and utility scale storage, and charging infrastructure.

He holds an engineering degree from UNSW, and Masters Degrees in Engineering Management and Energy Systems from RMIT and The University of Melbourne, and is a Graduate of the Australian Institute of Company Directors (GAICD).

The appointments come amid a review of the market operator's governance that suggests a full overhaul may be on the cards.

Tasmania weighs new Marinus costs

The likely impact of Tasmania’s Marinus Link project on Tasmanian electricity bills is no clearer following two days of parliamentary hearings.

Marinus Link CEO Stephanie McGregor and Tasmanian Treasury officials followed TasNetworks CEO Seán McGoldrick in appearing before Tasmania’s Joint Select Committee on Energy Matters this week, facing numerous questions about the whole-of-state business case for Marinus, which shows prices would increase for Tasmanians on the back of the project, and particularly so for major industrial customers.

Meanwhile, Tasmania’s Treasury is working with TasNetworks to deliver on a policy commitment made by the government to shield major industrial customers from the forecast $20 million increase in bills stemming from Marinus. The costs to cover it are expected to appear in the state’s next budget.

My kingdom for a common data model

Project EDGE and Project Jupiter have shown that Virtual Power Plants and dynamic operating envelopes can be coordinated at scale.

But despite the clear benefits, writes Kaluza’s Jesse Warburg, orchestration in Australia is still patchy and inconsistent.

“One of the biggest obstacles is technology fragmentation. Distribution networks differ widely in their data availability and infrastructure capabilities, which makes it difficult to develop standardised solutions that can work everywhere.”

Catch Up

Capital

EnergyAustralia, the country’s third-largest electricity and gas supplier, has embarked on a major initiative to lift the performance of its retail arm after suffering a near 86% plunge in full-year operating earnings. The business, owned by Hong Kong-listed CLP Group, lost 83,000 customers and has begun an initiative to modernise its back-end systems to improve retail efficiency and customer experience. (AFR)

Newcastle startup Kardinia Energy will receive $2.15 million from the federal government’s Industry Growth Program to support commercial pilots of the printed solar technology it developed in conjunction with researchers at the Newcastle Institute of Energy and Resources (NIER). Kardinia’s technology, which was tested at scale at Coldplay’s recent Australian concert, uses electronic inks that can be run through a conventional industrial printer to make what NIER professor Paul Dastoor called “product at extremely low cost, at extremely large scale… and when that product is finished, it’s 100 per cent recyclable.”

Retailer Engie has agreed to buy UK Power Networks, Britain’s biggest electricity distribution company, for £10.5 billion from Hong Kong billionaire Li Ka-shing’s CK Infrastructure Holdings. (FT)


Energy systems

The Irish government has reopened the country’s energy grid to new data centres, four years after regulator CRU imposed strict rules regarding location, dispatchable and on-site generation expectations, and demand-side flexibility. Since then, only one data centre project has come online – leaving Ireland out of the global explosion in data centre capacity. The reversal comes after the CRU’s Decision Paper on the Large Energy User Connection Policy codified terms for data centre operators including behind-the-meter generation equal to 100% of the grid connection; siting facilities in “unconstrained locations of the grid”; and matching 80% of the sites’ annual electricity demand with renewable energy investments in Ireland. (DCByte)


Projects

Yindjibarndi Energy Corporation is calling for expressions of interest for offtake of the renewable energy to be generated at its Project Baru Marnda, which will include around 1.05GW of wind, a supporting solar array and battery energy storage system (BESS) within WA’s Pilbara region. The site is expected to be operational by 2031, with support expected from large energy users, heavy industry, hydrogen and battery developers, minerals processors, infrastructure operators, and major Pilbara projects welcome to advance use cases. (NIT)

Western Australia’s Equus Energy (ASX: EQU) is pushing towards financial close as it solidifies plans to backfill gas capacity at Woodside’s Karratha Gas Plant, which is expected to run out of gas by 2035. Equus has already signed non-binding terms with Woodside to tap into its pipe infrastructure, which it will revive by tapping a reserve of around 320 million barrels of oil equivalent that it bought from global energy giant Hess when it suspended the Equus project and left Australia in 2016. (The Australian)


Policy

The battle over who will power data centres ramped up a notch this week, as US president Donald Trump took the opportunity during his State of the Union address to announce that he would shortly meet with the CEOs of Amazon, Meta, Microsoft, and Google parent Alphabet to pressure them to sign his Rate Payer Protection Pledge. The non-binding commitment – intended to motivate the fast-growing AI giants to bring, build or buy their own sources of power rather than draining power from the public grid – has been welcomed as “pragmatic”. Invited but potentially sending apologies are xAI, Oracle and OpenAI – whose CEO Sam Altman infamously justified AI’s power consumption by comparing it to the large amount of energy it takes to “train a human”. (AFR)


Regulation

The AEMC has released a pair of draft rules designed to head off predicted shortfalls of gas by improving the management in the east coast energy system with a package of “targeted, practical reforms designed to give the market and AEMO better visibility and tools to anticipate and manage any supply risks.” The draft rules on enhancing reliability and supply adequacy advise clearer warning signals and better forecasting, while a proposed Supplier of Last Resort (SoLR) mechanism would protect consumers by imposing price limits on contracted SoLR services, and increase transparency by publishing notices when SoLR contracts are activated. Submissions close on April 9 and April 23, respectively, with an information session to be held on 13 March.


Climate

Fiji and Tuvalu will host pre-COP meetings and a special leaders’ component, respectively, in advance of the UN’s COP31 meeting in Antalya, Türkiye in November. The special sessions, which were announced at the Pacific Islands Forum, will be held in October and will provide “an unprecedented opportunity for the world to listen to the Pacific and understand the existential threat climate change poses for the region,” minister for Pacific Island affairs Pat Conroy said. Australia holds the negotiations presidency for COP31.

Large emitting corporations should anticipate ongoing legal action from shareholders, regulators and activists despite the Federal Court’s recent finding for Santos in the landmark ACCR v Santos court decision, an analysis of the finding from law firm Hamilton Locke has advised. Companies should “continue to focus on ensuring all representations regarding emissions and the energy transition are accurate and evidence based,” it says.


Research

The newly signed Australia-Indonesia Treaty on Common Security should be tapped to identify “big, impactful projects in renewable energy”, a new Australian Strategic Policy Institute (ASPI) analysis has argued – with two-way investment flagged as a way of engaging Australian companies to build momentum behind projects such as Danantara’s $7 billion (US$5 billion) worth of waste-to-energy projects. Such collaborations “would bring real economic benefits to both countries while making their strategic ties even stronger,” ASPI argues.


People

Pilot Energy (ASX: PGY) has announced Brian Siddall as CEO, effective immediately. Siddall has previously worked for firms including Beach Energy (ASX: BPT), Santos (ASX: STO) and Origin Energy (ASX: ORG), and takes over for outgoing CEO Brad Lingo. (Listcorp)

What's On

February 27
National Energy Transition Research Summit

Climate Change Authority CEO Kath Rowley will speak at this ACOLA event in Canberra, alongside Net Zero Economy Authority CEO David Shankey and Australia’s Chief Scientist Tony Haymet.


March 3
Clean Energy Investor Group Conference

Victorian Energy Minister Lily D’Ambrosio will headline this Melbourne event also featuring ENGIE Australia Managing Director of Renewables and Batteries Laura Caspari, SEC Vic CEO Chris Miller, Queensland Renewable Energy Council CEO Katie-Anne Mulder, VicGrid CEO Alistair Parker, and Squadron Energy CEO Rob Wheals.


March 4-5
Energy Consumers Australia Foresighting Forum

Luis Gonzalez, Chief Data and AI Officer at Aboitz Power, Robert Gross, Director of the UK Energy Research Centre, and Harriet Thomson, Associate Director at the Glasgow Centre for Sustainable Energy will keynote this Sydney event. Industry speakers include EnergyAustralia CEO Mark Collette, Essential Energy CEO John Cleland, and Tim Jarratt, Group Executive, Market Development & Strategy, Ausgrid.


March 9
Understanding the draft reliability arrangements in the ECGS

The Australian Energy Market Commission will hold a public forum to discuss draft determinations on the implementation of a reliability standard and related reliability tools for the East Coast Gas System.


March 10
Orchestrating Consumer Energy Resources to Benefit Customers and Strengthen the Grid

AGL CEO Damien Nicks will keynote this Australian Energy Council event in Melbourne. Other speakers include AEMC Chair Anna Collyer and AEMO Executive General Manager, Policy & Corporate Affairs Violette Mouchaileh.

The Energy

The Energy is dedicated to covering the business of energy and in particular the people, capital, projects and emerging technology behind the energy transition.

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