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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Surprise! Yallourn is unreliable
Published 4 days ago • 10 min read
Hey Reader, welcome to The Energy. In today's edition:
Waiting for V2G
Green bank supports small business solving big business problems
Why the answer to Yallourn's closure is not gas
Gas decision wins no friends
Slow burn for future grid's 'gamechanger'
You can readily see why vehicle-to-grid charging — offering win-win benefits for customers, grid operators and the environment — is an emerging hot topic for the energy transition.
In practice, realising these benefits is likely to be a slow burn initially, warming up to a quick dash in the 2030s and a blistering finish in the 2040s.
More EVs are expected to join the ranks of officially two-way charging-ready makes this year and next, but right now the Clean Energy Council has only 3 two-way EV chargers on its approved product list.
Several others are making their way through the approvals process, JET Charge co-founder Tim Washington says. But to make the most of the opportunity for the grid, he wants the re-elected Albanese government to use its thumping majority to widen the scope of its 30% home battery rebate to include bidirectional chargers.
“Our argument is that if you prove you've got a vehicle that's capable of bidirectional charging, why should the battery like subsidy not apply to a bi directional charger? They're doing the same thing.” — Tim Washington, co-founder, JET Charge
Absorbing the economy’s growing capacity and willingness for distributed generation is a key challenge in Australia’s energy transition.
The $500 million Powering Australia Technology Fund, which supports emerging technology businesses, committed $3 million to a recent $15 million capital raise by clean tech startup EcoJoule to quickly scale up and do exactly that.
As a business-to-business technology company, EcoJoule is selling to a commercial buyer – the Distributed Network Service Providers (DNSPs) – and they’re solving a grid tech problem.
Expert view
"We're really open for business to receive inbound leads and suggestions … I think that we've generally seen a reset over the last four years, and there's some good data which shows there was a run up in investment activity through 2021 and then from 2023-24 we actually gone through back to a more normalised level of that sort of historical trend of investment activity in the space. So, if anything, we've kind of come back to a more stable place relative to three or four years ago.
The growth capital strategy is the really important part of the story here in why we decided to invest in EcoJoule.
That's about providing the growth capital for the businesses which have established their customers and they've got a demonstrated technology. And then moving from the ‘how do we do this’ to ‘what do we do now, how do we get more of it out the door’?
There are great businesses solving big business problems, this is a beautiful example of one of those, and it's now got $15 million on the balance sheet to go and grow in and serve those customers and really help solve those low-voltage network challenges that are out there with the consumer energy resources and distributed resources hitting those networks.
It's a challenge that is continuing to grow as we electrify, and so we've got to make sure the grid keeps up.”
An analysis released by Nexa Advisory, ahead of Victoria’s transmission plan expected on Friday, suggests Yallourn Power Station is limping to the finish line.
Yallourn’s owner EnergyAustralia and the Victorian government both say the brown coal-fired power station will close in 2028.
“But anything can happen between now and 2028,” Nexa CEO Stephanie Bashir warns.
Expert view
"What’s being planned in the ISP is not enough … if you want to have a holistic system and share energy when things are uncertain in certain states and vice versa, we do need the focus on intra-regional transmission that is going to connect to onshore wind projects and that, basically, is going to provide the replacement generation. We’re going to have to get on with alternative solutions because, as we say in this report, these coal power stations, even if they did want to put subsidies in and extend them, technically they cannot be extended.
And while Transgrid and others are building the big interconnectors, they’re not going to be able to focus on other projects. We need to bring in contestability in transmission buildout so you bring in the businesses who can, and there’s no shortage of them.
We’ve got lots of companies already in Australia like EDF, APA, Iberdrola that do transmission overseas and which have huge procurement contracts and supply chain capability. But let’s open it up to AusNet, who can deliver projects in NSW, or Powerlink, who can deliver projects in Victoria, if they've got the resources, and they can demonstrate the capability and the supply chain. We need all hands on deck.”
Victoria’s gas pipeline owners have been crying foul in for years over rapid electrification, chasing accelerated depreciation to avoid eating what energy expert Tony Wood has described as a “sh*t sandwich”.
The Australian Energy Regulator (AER) rejected AusNet’s 2023−28 access arrangement variation proposal, saying AusNet failed to justify its proposal to vary access arrangement to recover more accelerated depreciation from customers. But Jemena Gas Networks faired better.
Still, the final decision on the 2025-30 gas distribution access arrangement for Jemena further underlined the urgent need to “ensure millions of consumers aren’t unfairly paying for the declining gas market”, according to Energy Consumers Australia.
“Our (2024) report with Dynamic Analysis, Turning down the gas, found that one of the most impactful things we can do now to lessen the risks posed by stranded assets is to stop unnecessary spending on the gas network. The AER has, however, increased Jemena’s proposed spending on connecting new customers to their network, which we think is a problem given the known risk that consumer gas bills will rise in the near future.” — Energy Consumers Australia CEO Dr Brendan French.
AER Chair Clare Savage said the final decision on Jemena, which included a reduced amount allowed for accelerated depreciation, balanced a range of factors, such as the uncertainty of gas demand during the transition to net zero, with an affordable access arrangement that provided for a safe, reliable and secure service.
Expert view
"The regulator has a tough job making determinations for a shrinking gas network under rules designed for network expansion, but the decision to socialise disconnection costs among remaining gas users really kicks the snowball down the road.
Of course we need to remove barriers to electrification, but not at the expense of those least able to electrify. Under the AER's decision, people in apartments, renters and those on low income will foot the highest costs for other people getting off gas.
Instead of unfairly socialising these costs, we need to ensure gas businesses can recover no more than the minimum cost for safe disconnection, and have a serious conversation about how the costs of the gas network contraction should be shared among consumers, shareholders and governments.”
Craig Memery
Senior Adviser Energy, Justice and Equity Centre
Catch up
Capital
Woodside Energy (ASX: WDS) and Saudi Arabia’s Aramco entered into a non-binding collaboration agreement on global opportunities, including Aramco’s potential acquisition of an equity stake in, and LNG offtake from, the US$17.5 billion Louisiana LNG project. The agreement was signed in Riyadh at the Saudi-US Investment Forum. Woodside, eyeing first LNG in 2029, has already sold a chunk to Stonepeak and is expected to sell a further 20%-30%. (WSJ) (Reuters) (Capital Brief)
US President Donald Trumpannounced Saudi Arabia’s US$600 billion commitment to invest in the United States to strengthen energy security, defence industry, technology leadership, and access to global infrastructure and critical minerals.
Clean energy Power Purchase Agreements reached record levels in the US in 2024, a new report from the American Clean Power Association showed. Amazon, Microsoft, Meta, and Google collectively contracted 11.3 GW of clean power in a year that saw wind and utility-scale solar generation exceed coal output for the first time, accounting for nearly 16% of US electricity generation.
Projects
Marinus Linksigned an agreement with global advisory company Jacobs (NYSE:J) to deliver Stage 1 of the Marinus Link project. The company said the board would deliver its final investment decision recommendation on the project to shareholders on May 31.
“The assessment for the Browse to North West Shelf Development under national environment law is currently paused. The department is awaiting further information to inform the assessment,” the federal Department of Climate Change, Energy, the Environment and Water told The Energy.
Earlier this week, Woodside tweaked its A$30 billion Browse to NWS Development proposal, which will now be subject to a four-week public review period by the WA EPA, before the hot potato lands in the lap of the new federal Environment Minister Murray Watt.
“It’s a very positive step and it’s a sign that Woodside are listening to the concerns of the EPA and the community … We have to balance economic prosperity with protecting our environment.” — WA Premier Roger Cook
But WA Greens fossil fuel and climate spokesperson Sophie McNeill said the changes were not significant, accusing the company of “sneaky” and “deceitful” behaviour. (ABC)
Greenpeace Australia Pacific said Labor - and Watts - could define their legacy on energy systems and the environment with critical decisions looming.
“First off the mark must be the rejection of Woodside’s unacceptable gas plans in Western Australia, including the North West Shelf extension, and Browse proposal which would see drilling for gas underneath the fragile and pristine Scott Reef, threatening species like the pygmy blue whale and green sea turtle. We know the Albanese Government has unfinished business on both reforming our broken nature laws so they properly address the ongoing destruction of nature and wildlife; and on addressing dangerous fossil fuels. Australia is an aspiring host of COP31 and has a responsibility to meet its international obligations, including setting out its plan to ‘transition away from fossil fuels in energy systems’ as soon as possible.” — Head of Advocacy at Greenpeace Australia Pacific Dr Susie Byers
Policy
NSW Farmers told a NSW government inquiry into renewable energy zones that energy developers must fairly engage with the community and properly address the impacts of renewable projects. “Transmission lines also pose a real fire risk, and there aren’t any proper protocols in place to manage this,” NSW Farmers President Xavier Martinsaid.
Weld Australia called for a national inspection regime for imported fabricated steel and high-risk goods. The industry body said thousands of tonnes of imported fabricated steel - used in critical infrastructure such as wind towers, road gantries, and energy systems - were arriving without any independent inspection to ensure they met Australian Standards. The call is also part of seeking a level playing field for local manufacturers, who must comply with the standards and are often undercut by offshore producers who don’t.
After dodging a bullet in the federal election, AEMO’s draft FY26 Strategic Corporate Plan opened for consultation for rentseekers and others shaping the energy transition.
Regulation
An Italian court overturned some of the restrictions imposed by a recent government decree on the development of new renewable energy projects. The decree had been designed to speed up renewable project development with annual targets set for each Italian region. (Reuters)
Technology
US flow batteries firm XL Batteries said it would run a first-of-a-kind demonstration project at what will be one of America’s largest data centres. The 333-kilowatt demonstration-scale organic flow battery system is expected to be in place at the Prometheus Hyperscale data centre by 2027. (PV Magazine)
The IMF used data from the Organization of the Petroleum Exporting Countries to produce this chart highlighting the potential for AI-led power demand. OPEC projects the 500 terawatt hours of electricity data centres used in 2023 could triple to 1500 terawatt hours by 2030.
Research
A report by Beyond Fossil Fuels, E3G, Ember and the Institute for Energy Economics and Financial Analysis found outdated planning and obsolete mandates were slowing the upgrade and build-out of Europe’s electricity highways. Some 1,700GW of renewables was stuck in grid connection queues across 16 countries, with €7.2 billion of renewable power wasted across seven countries in 2024.
Climate
Energy Minister Chris Bowentold the AFR the government wouldn’t necessarily have its 2035 emissions reduction target ready by the time of the next preliminary COP meetings in June as energy insiders argued delivering the target before these meetings would improve Australia’s chances of hosting COP31.
“I haven’t received the Climate Change Authority advice yet. Then, it’ll take me a little bit of time to take them through the cabinet, but it will be well and truly before COP30 [in Brazil in November],” the AFR reported.
What's on
May 15 How Traditional Owners are powering the clean energy transition
Melbourne Climate Futures Senior Research Fellow Dr Lily O'Neill will speak at this Melbourne event.
May 15 AEMO Quarterly Energy Dynamics webinar
The Melbourne Energy Institute will host Kerry Galloway, Manager - Market Insights from AEMO for this webinar.
May 21-22 Australian Renewable Energy Zones conference
Australian Energy Infrastructure Commissioner Tony Mahar will speak along with EnergyCo CEO Hannah McCaughey and NSW Energy and Water Ombudsman Janine Young at this Sydney event.
May 21-22 Hunter New Energy Symposium
Raymond Hohle, Executive Manager Projects and Assets - Port of Newcastle, Heidi Lee, CEO - Beyond Zero Emissions and Tim Buckley, Director - Climate Energy Finance (CEF) will keynote at this Newcastle event.
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 28-29 H2 2 ZERO Summit 2025
New Zealand’s Energy Minister Simon Watts, Japan’s Ambassador to NZ MakotoOsawa, and Rocket Lab Founder Sir Peter Beck are among diplomats, business leaders and researchers speaking at this event in Wellington.
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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