Bowen's chance to put the weights on the states


Hey Reader, welcome to The Energy.

In today's edition:

  • Planning is where rubber hits the road for Bowen
  • New thinking for the 2026 ISP
  • DER technical standards regs back to square one
  • Finishing line for Woodside Energy
  • Eyes on the green iron prize at a price

Time for Bowen to put the weights on the states

Climate Change and Energy Minister Chris Bowen is drowning in expansive advice on what the Albanese government should do with its thumping majority.

But Prime Minister Anthony Albanese’s innate caution suggests they’re not going to dramatically expand their climate and energy transition platform.

The trick is delivering what they’ve already promised, and planning is where the rubber hits the road on this front. This is mostly in the hands of the states, so that’s where the glare of the spotlight must land.

Expert view

"It's a bit too late to reach an 82% (renewables) target unless we see some really bold action.

“We need them to actually announce ‘this is what we're doing, and this is how we're going to do it’. They are energy ministers, after all, and really the ball stops with them.

Stephanie Bashir
Principal, Nexa Advisory

New thinking for the 2026 ISP

AEMO opened the door for fresh advice on inputs and assumptions for the 2026 Integrated System Plan (ISP), including better modelling of Consumer Energy Resources (CER) and gas.

The draft options papers for the electricity network and gas infrastructure require stakeholder feedback by a tight deadline of June 23.

Expert view

"IGCC members have consistently advocated for better integration of CER in the ISP modelling, as AEMO and the Climate Change Authority have forecast that it will play a significant role in meeting the Australian Government's renewable energy targets and net zero targets.

Currently, CER is poorly integrated across electricity networks, and AEMO doesn't have good visibility on how much of it there is, and where.

Unlocking behind the meter resources will mean that revenue streams for utility scale investments can be calculated with better clarity, because mandatory switch offs and curtailment can be better planned around. Transmission projects are critical, but there will be less pressure on them if more electricity is generated and used in local areas.

It is a very positive step forward to better integrate modelling for supply and demand across the electricity network and the gas network, as the price for electricity is tightly related to the price of natural gas. Natural gas is the most expensive source of electricity in the electricity network, and it will continue to be, as renewable energy and batteries continue to move further down their cost curves.”

Bethany Richards
Policy Manager, Investor Group on Climate Change

Expert view

"AEMO’s latest report has made one thing clear: relying solely on the necessary amount of transmission projects to be built on time and at cost to achieve energy transition goals is not realistic. We can no longer afford to under-invest in complementary solutions that can address the primary barrier to our clean energy transition: grid availability and accessibility.

Instead of assessing network and generation projects in isolation, we need to bring all relevant data together into a holistic lens. This will ensure megawatt hours are delivered at the cheapest cost to the consumer without further derailing clean energy targets. The existing network holds multiple gigawatts of untapped potential, but unlocking it requires a shift in both policy and execution.

New digital technologies underpinned by sophisticated AI/ML can generate highly accurate digital models of the grid, helping identify optimal paths to unlocking existing grid capacity and connecting the most viable renewable assets at scale.”

Jack Curtis
Co-founder, Neara

Feds take DER regulation back to square one

Late on Friday the federal energy department invited stakeholders to join a series of June workshops to “develop options for a National CER Technical Regulatory Framework”.

Expert view

"This is a frustrating return to square one that ignores six years previous work to progress the governance of technical standards for distributed energy resources (DER).

It epitomises the worst of Australian energy bureaucracy: endless consultation cycles — usually involving post-it note workshops — that consume resources and stakeholder time while urgent problems remain unaddressed.

Gabrielle Kuiper
Strategic energy, sustainability and climate change professional

Finishing line for Woodside Energy

Supporting a controversial proposed extension of North West Shelf gas production to 2070, the WA government announced a monitoring program for protecting ancient Murujuga rock art from industrial emissions.

"The approach of the program is to achieve a transparent, risk-based and adaptive framework for monitoring and managing environmental quality to successfully protect the rock art on Murujuga from anthropogenic emissions into the long-term." — Environment Minister Matthew Swinbourn

The Murujuga Cultural Landscape and its more than one million petroglyphs is also on the tentative list for UNESCO World Heritage status, with the support of Woodside Energy.

Woodside says the nationally significant project has delivered jobs, royalties, taxes and energy security for decades.

But environmental approval expires in 2030 and it’s up to new federal Environment Minister Murray Watt to reconcile the economics with the climate impact - before tweaking laws for a federal environmental protection body that he won’t call “nature positive”.

Turning up the spin cycle, Premier Roger Cook on Sunday released new figures on record resources sector jobs growth and stellar LNG sales data in difficult market conditions.

Catch up

Capital

In the US Senate, Republicans are preparing to have the final say and curb last week’s House rollback of IRA tax credits. (Politico)


Projects

Low-carbon energy consultancy Xodus has been allocated land in the WA Mid-West region for the development of a commercial-scale green hydrogen and ammonia development. Located in the Oakajee Strategic Industrial Area, the allocation paves the way for Xodus and its partners to progress the Warradarge Energy project, formerly known as Project MercurHy.

“Scalable, high-quality renewable energy projects like ours are needed to bridge the gap between today’s demonstration sized facilities and the gigawatt-scale hydrogen developments of the future. This project is about accelerating the supply chain, minimising technology risks, and driving down costs. — Warradarge Energy CEO Stephen Archer

The initial phase is well advanced, with over 16,000 hectares of land secured at Warradarge, power supply agreements with an existing wind farm under negotiation and offtake partners onboard, Xodus said.

NSW is now the national test case for whether large-scale energy transition can be delivered with sustained community backing. (The Australian)


Policy

The Illawarra Renewable Energy Zone (REZ) Roundtable mapped out what can be delivered by 2030. The NSW region already hosts major energy, port and transport infrastructure, has a skilled workforce and strong demand for future renewable energy projects, but needs transmission. Future offshore wind would also need access to transmission built for the REZ.

“The Illawarra has the potential to be NSW’s first urban renewable energy zone. This is a chance to leverage the community’s enthusiasm for solar, batteries and EVs to benefit the entire region, as well as pursue longer-term opportunities to support green manufacturing. — NSW Climate Change and Energy Minister Penny Sharpe

US President Trump signed an executive order to speed up regulatory approvals of nuclear reactors for "economic and national security" reasons. The new rules would require the regulator to decide on nuclear reactor licenses within 18 months.


Regulation

Victoria's default electricity offer will rise an average of $20 (1%) for consumers and $90 (3%) for small businesses under the Essential Services Commission's final decision. In its calculation the ESC lowered the retail operating margin and changed the data used to calculate wholesale electricity costs.

Energy companies re-using plan names will now be required to add additional information to bills after an AER decision. The rule comes after consumer group CHOICE filed a complaint to the ACCC over cheaper offers being marketed with the same name as existing products.

New Zealand will regulate “orange hydrogen”. The "orange" tag is linked to the colour of the oxidised iron in the geochemical reactions. The process combines hydrogen production with carbon sequestration, making it a potential low-carbon energy source.

“Natural and orange hydrogen could be game-changers for New Zealand’s energy sector, particularly for our hard-to-electrify industries and in reducing our reliance on imported fossil fuels.
The development of this resource has largely been overlooked due to misconceptions that accumulations are rare. Recent discoveries, including one of the world’s few documented hydrogen seeps in Fiordland, tell us more about how it forms in different geologies.” — NZ Resources Minister Shane Jones

Technology

Former senior US energy official Joe Romm pushed back against the “drumbeat” pinning Spain’s recent blackout on renewables, after an FT story revealed large power plants - gas, nuclear and/or hydro - may have fallen short in controlling the voltage of the electricity system.

“In the end, if there is an official explanation, it will probably cast a wide net of blame. The lesson, I expect, is NOT that you can't incorporate high levels of renewables into the grid, but that you need a modernised grid to do so optimally and safely - which means spending money that individual companies may not have an incentive to do, but that national and region as a whole must require and support. — Penn Centre Senior Research Fellow Joe Romm

Climate

A land of drought and flooding rains - in pictures. (ABC)


People

The Opposition frontbench is still pending, as talks continue between the Liberals and Nationals weeks after the federal election they lost.

Fortescue’s Energy CEO Mark Hutchinson will retire but remain in touch as a senior advisor for the next year. Latin America head Agustin (Gus) Pichot will take on the newly created role of CEO Growth and Energy, effective July 1, but Metals CEO Dino Otranto gains operational responsibility for global electrification, decarbonisation and hydrogen.

John Connor announced he would leave the Carbon Market Institute CEO role for a new job that’s yet to be revealed.

Industry body Energy Networks Australia appointed ex-AEMC policy wonk Russell Pendlebury as General Manager Economic Regulation.


Research

A $400 billion a year export opportunity is at risk without government intervention to promote a green iron industry for the Pilbara, Geraldton, Kwinana, Eyre Peninsula and Gladstone, according to new research released by The Superpower Institute. (The Energy)


Random

Universities face getting stuck with thousands of obsolete robots. (The Conversation)

What's on

May 26
Labor's landslide: What's next for energy and climate policy in Australia?

Simon Corbell, advisory board Chair, The Energy will moderate this webinar featuring Climate Change Authority Chair Matt Kean, DER strategy specialist Gabrielle Kuiper, Windlab CEO John Martin, and DPG Advisory Solutions Director Climate and ESG Ben Oquist.


May 26
Superpower Institute report launch

Professor Ross Garnaut, Professor Rod Sims, and Policy Lead Dr Ingrid Burfurd will launch a research report, A Green Iron Plan for Australia: Securing Prosperity in a Decarbonising World, at Old Parliament House in Canberra.


May 26-29
Australian Energy Producers 2025

Former US ambassador Joe Hockey will deliver the keynote address at the Australian Energy Producers annual industry conference. Other speakers at the Brisbane event include Queensland Treasurer and Energy Minister David Janetzki, Woodside Energy CEO Meg O'Neill, Santos CEO Kevin Gallagher, and former RBA governor Dr Philip Lowe.


May 27
AER online forum for Project Marinus

The Australian Energy Regulator will host an online public forum to discuss its initial draft decision on Marinus Link's proposal.


May 28
National Press Club

Professor Brian P. Schmidt and Professor Richard Holden will address the National Press Club in Canberra on Securing Australia’s Sovereign Research Capability.


May 28-29
H2 2 ZERO Summit 2025

New Zealand’s Energy Minister Simon Watts, Japan’s Ambassador to NZ Makoto Osawa, and Rocket Lab Founder Sir Peter Beck are among diplomats, business leaders and researchers speaking at this event in Wellington.


June 3
Australian Offshore Wind Industry Forum

Victorian Energy Minister, Lily D'Ambrosio and CEC Chief Executive Kane Thornton are headlining this Clean Energy Council event in Melbourne.


June 6
National Competition Policy analysis 2025

The Productivity Commission’s call for submissions has a June 6 deadline for an occupational licensing scheme that provides for labour mobility nationally and other competition reform options identified as a priority during the policy study.


June 6
Energy Horizons 2025

NEM review chair Tim Nelson and ARENA General Counsel Dr Cameron Kelly are among the speakers at Macquarie University’s Energy Horizons 2025: Innovation Across Evolving Energy Markets event in Sydney.


June 11
Australia Energy Regulator stakeholder forum

An online forum will be held with electricity and gas retailers and other stakeholders to discuss the findings of the Review of payment difficulty protections in the National Energy Customer Framework.

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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