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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System security pain points
Published about 23 hours ago • 7 min read
Hey Reader, in today's edition:
The price of instability
Sharan Burrow on the re-industrialisation opportunity
Don't miss Energy Tetris
Mind the gap
New investment in system security is needed as coal plants exit but that doesn’t necessarily mean opting for gas tech, experts say, responding to the market operator’s latest assessment.
Meanwhile, the peak body for generators, the Australian Energy Council, continued to argue for an inertia market "to offer more options and realistic solutions at least cost", warning of the risks of relying heavily on synchronous condensers.
“It’s clear the Australian Energy Market Operator (AEMO) has listened carefully to stakeholders and are working to leverage AEMO's world-class engineers to work with industry and consumers on an efficient transition.
The level of detail we’re now seeing on the first transition points highlights that we quickly need that same detail for the next transition points (and how to operate the end-state grid). I also sometimes got the sense there’s engineering results that have been done but not included, particularly in terms of more specific numbers or challenges. And we need to start translating the Transition Plan for System Security into the Electricity Statement of Opportunities and procurement — what specific assets are needed for future system strength or to deliver system restart? These will be important components of the next iteration of the Transition Plan for System Security."
Joel Gilmore
Associate Professor, Centre for Applied Energy Economics & Policy Research
Expert view
“AEMO is now warning exactly what we’ve been saying for years — Australia can’t drift into coal closure. Unclear, ad hoc shutdowns are now a direct risk to system security ... Governments must step up now and get critical grid investments back on track so households aren’t left carrying the burden for failures in policy and delivery.
Minimum system load should be managed through markets, storage and coordinated consumer energy resources, not by switching off household solar. Essential system services like system strength, inertia, frequency and restart must move from bespoke, temporary arrangements to enduring, investable markets. New investment in system security must prioritise clean, least-cost technologies. New gas turbines — even with clutches — risk locking consumers into decades of expensive backup energy and should be avoided where cleaner alternatives exist.”
Stephanie Bashir
Principal, Nexa Advisory
Sharan Burrow on the re-industrialisation opportunity
In the latest episode of The Energy Connection podcast Aurecon’s Paul Gleeson speaks with climate and labour rights advocate Sharan Burrow.
Burrow shares her vision for the re-industrialisation opportunities Australia has in the transition, and the need to think laterally as Australia decommissions retiring energy assets and builds out the new energy economy.
“No project, in any sector, in my view, should be established without understanding your impact, both on people and on nature. So we don't have a choice, but equally we have lots of opportunity.
Decommissioning is a $60 billion-plus industry across Australia. But if you think about it laterally to the climate, clean exports and clean tech challenge, you need the same things. You need the port infrastructure, you need the skills of all the traditional trades to break it up, weld and recycle it. Then you need the clean steel operations that we're trying to get up in places like Collie and others that are about recycling steel.
And the workers want that. They want the skills, they want to get ahead of it now, but we are not doing the planning. If we get ahead of the opportunities, the skills in the investment in decommissioning, guess what, that is also building out clean energy for new industries and the clean exports of embedded energy that we need in clean iron and clean steel in many other sectors, as well as our critical minerals.
But we can only win at this if we're serious about having the conversations and doing the planning that makes it possible.”
Sharan Burrow
Global advocate for human rights, climate action and Just Transition
Energy Tetris: Meet the experts and plan for 2026
Across Sydney and Melbourne The Energy will next week host it's first live in-person event.
This will be an efficient four hours of insight and update on where the transition is now, and what's needed to plan for in 2026 and beyond. Don't miss it.
Catch Up
Capital
Fortescue (ASX: FMG) installed its first-ever large-scale Battery Energy Storage System (BESS), designed to displace diesel and gas use at its iron ore mines. North Star Junction (NSJ) is the first in a planned 4-5GWh rollout of large-scale storage systems that will be required to decarbonise Fortescue’s energy supply over the coming years. Powered by Chinese BYD technology, the NSJ BESS will store renewable energy generated during the day and supply green power to Fortescue’s Pilbara Energy Connect (PEC) network at night. Comprising 48 energy storage units, it has a total capacity of 250MWh and can deliver up to 50MW of power for five hours.
Australia’s only aluminium smelter already powered by renewable energy, Bell Bay, now has a 12-month extension to its power agreement with Hydro Tasmania. Energy Minister Nick Duigan said the deal provided the time needed to work with the federal government on a long-term arrangement, including confirmation of Bell Bay Aluminium’s eligibility for the Green Aluminium Production Credit Scheme that’s still in the design and consultation phase.
Projects
The WA government allocated $27 million in Mid-year Review funding to renewable energy for remote Aboriginal communities, enabling Horizon Power as part of its ReGen program to upgrade 13 standalone power systems and undertake planning and early-stage procurement for upgrades in a further eight communities.
The Queensland Government announced a deal to construct the state’s first gas-fired power station in more than a decade. State-owned CS Energy and APA Group (ASX: APA) will construct the 400MW Brigalow Peaking Power Plant in Western Downs. Under the binding agreement, APA will contribute project funding, while CS Energy will operate and maintain the power plant, including physical dispatch of its output into the market. APA’s 80% share of the plant will be contracted to CS Energy under a 25-year offtake agreement.
Ausgrid launched its largest community battery yet, the Peats Ridge 11kV Battery Energy Storage System project managed by PLUS ES, comprising two 4.99MW batteries and located on the NSW Central Coast. Peats Ridge expands Ausgrid's Energy Storage as a Service (ESaaS) initiative, currently offered in partnership with EnergyAustralia and Origin Energy to bring tangible transition benefits to a much wider segment of the community — including renters and apartment owners.
Policy
Employer and apprentice incentives for the energy and housing construction sectors under the Key Apprenticeship Program (KAP) have been extended to December 2026. More than 15,400 new energy apprentices have started training under the New Energy Apprenticeship Program (NEAP) and KAP. Employers receive $5,000 for hiring apprentices in these priority occupations for another year, while apprentices will continue to receive $10,000.
Regulation
Larger debts across a smaller number of customers have led to an increase of the overall average energy debt, which was $1,367 at the end of June 2025 compared to $1,148 a year earlier, according to Annual retail markets report 2024-25 published by the Australian Energy Regulator. One-third of those in energy debt were not receiving support through a payment plan or hardship program. New rules to take effect in July 2026 will require retailers to provide more information about concessions and rebates, prompting customers to consider if they're eligible for that support, AER Board Member Jarrod Ball said.
Technology
The National Reconstruction Fund Corporation (NRFC) allocated $100 million to Intellihub, a smart metering and data intelligence business owned by Brookfield and Pacific Equity Partners. “Intellihub is the NRFC’s first investment in the Renewables and Low Emissions Technology priority area, and the proprietary VPP technology behind its globally scalable Evergen platform was developed in partnership with the CSIRO,” NRFC CEO David Gall said. The $100 million investment in senior secured debt is part of a $3.1 billion debt funding package.
Climate
Are UN climate summits a waste of time? No, but they are in dire need of reform, writes University of Melbourne Research Fellow Arthur Wyns. (The Conversation)
Random
The cost of flying 42 officials to COP30 in Brazil was $1.6 million, federal Secretary Mike Kaiser told a Senate Estimates hearing. Australia's pavilion cost $1.4 million, in line with previous climate conferences. Australia held more than 90 events during the UN climate talks, hosting at least 4500 participants. (AAP)
What's On
December 5 Keeping the lights on - syncons vs batteries
Mark Twidell, Industry Professor of Practice at the UNSW Energy Institute, and Transgrid Executive General Manager of Network Jason Krstanoski will speak at this webinar from The Energy, moderated by UNSW Energy Institute CEO Dani Alexander.
December 8 The Energy Charter CEO Council Forum
SA Power Networks CEO Andrew Bills will join Essential Energy CEO John Cleland, EnergyAustralia CEO Mark Collette, Energy Charter CEO Sabiene Heindl andAusNet Services CEO David Smales at this online event on “delivering better customer + community outcomes”.
December 9, Sydney and December 11, Melbourne Energy Tetris
The Energy’s first live event will feature Quinbrook CEO Brian Restall, Energy Security Corporation CEO Paul Peters, Southerly Ten Chief Development Officer Erin Coldham, Hydro Tasmania Chairman Richard Bolt, Westwind Managing Director Tobias Geiger, Atmos Renewables GM of Development Allison Hawke, RWE Renewables APAC Head of Regulatory Affairs Matthew Dickie, ASL GM System Planning & Financial Markets, Melanie Koerner, UNSW Associate Professor Iain MacGill and Senior Research Associate Dylan McConnell and Energy Edge MD Josh Stabler.
December 17 Public Forum: AusNet Transmission Revenue Proposal 2027-32
The Australian Energy Regulator will host an online public forum for stakeholders to ask questions about AusNet's 2027-32 transmission revenue proposal.
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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