Under the bonnet of the AEMO review


Hey Reader, in today's edition:

  • Experts weigh in on AEMO review
  • The 'least worst option' for pricing
  • TasNetworks pushes on

Burning questions for AEMO review

A review of Australia’s Energy Market Operator that came at the eleventh hour of last year’s energy ministerial meeting was possibly not the Christmas gift DCCEEW was hoping for as it explores whether the Safeguard Mechanism should be expanded and grapples with the introduction of new environment laws.

Nonetheless, the review is now underway with feedback due March 6. It has been welcomed by energy veterans.

The role of industry on AEMO’s board, measures to improve transparency, and if states should still hold all the power are just some of the questions experts hope it will address.

The 'least worst option' for pricing

The energy rule maker’s proposal for higher fixed network charges has been condemned by some, including consumer advocates, for the blow it would deliver to consumer energy resources, energy efficiency and people who use very little energy.

We’ll see how energy generators and networks feel about it when the Australian Energy Market Commission publishes the submissions to its draft report, expected any day now.

Meanwhile, policy expert and former Energy Networks Australia CEO Andrew Dillon says debate over network pricing is a good thing given the stress the current network tariff framework is under.

Dillon argues higher fixed charges could be the least worst option to deliver more equitable pricing.

TasNetworks pushes on with North West Transmission

TasNetworks chief executive Sean McGoldrick has provided an update on the state-owned company’s progress at “moving heaven and earth” to get landowners across the line on the North West Transmission Developments, telling a Tasmanian parliamentary hearing just 10 of the 261 affected landowners were proving “more difficult”.

The two-stage $1.5 billion project includes 240 kilometres of transmission lines (172km being upgrades to existing transmission) that will connect to the controversial Marinus Link undersea cable being built to connect Tasmanian and Victorian renewable energy and, say proponents, strengthen the grid. Stage 1 is due to commence construction this year.

TasNetworks requires a wider than usual easement on some properties, and can gain access involuntarily if required.

McGoldrick told the hearing “we're still available for negotiations and our first preference is always to have a voluntary agreement”. The original deadline for landowners to sign up for compensation was December 1 last year.

Strategic benefit payments of $200,000 per kilometre are being paid over 20 years, and TasNetworks representatives told the hearing this cost was currently estimated at $38 million, along with $81.5 million for land acquisition.

Catch Up

Capital

Australia’s energy transition proved irresistible for global investors last year, with the energy, utilities and resources sector jumping from 25% of total mergers and acquisitions activity in 2024 to 46% in 2025, according to PwC Australia’s newly released M&A Outlook 2026. Buyers are paying premiums for “predictable revenue streams and energy transition exposure,” the report found, with total Australian deal value reaching $112 billion ($US79.5 billion) last year and 52% of the sector's Australian CEOs planning major acquisitions in the next 3 years.

The relatively slow pace of data centre approvals in Australia risks the country missing out on a share of $850 billion in AI data centre investments as the world’s tech giants storm to build new capacity, the Menzies Research Centre has said in calling the government’s national AI strategy “slow and reactive” and warning that it offers “little direction for industry or investors”. Hyperscalers have the capital, the thinktank argues, but byzantine regulations mean data centres take 16 to 18 months longer to be approved here than elsewhere – with energy supply a key consideration in planning and delivering the new sites. (AFR)

Energy grids are the “Decisive enabler and most pressing constraint of the global energy transition,” global quality assurance and risk management company DNV has said as it announced the acquisition of generator and storage manufacturer Smarter Power Solutions (SPS). DNV will roll SPS into its business to create a global centre of excellence that integrates SPS’s “highly specialised team” of power system engineers expertise in complex grid connection, advanced modelling, commissioning, and compliance.

Queensland Investment Corporation’s Bluecurrent business has secured the support of investment banks Barrenjoey and Citi as it joins the scrum of contenders vying to purchase the Plus Es smart meter business of NSW electricity distributor Ausgrid, according to reports that value the meter company at around $2.5 billion. Bluecurrent, which QIC created after buying Vector’s ANZ business in 2023, would probably attract ACCC scrutiny for the deal – which it is said to be pursuing to increase its economies of scale. (The Australian)


Projects

Aula Energy has acquired 1GW of solar assets from Lightsource bp, delivering the company five operating solar farms in West Wyalong, Wunghnu, Woolooga, Wellington and Wellington North. The acquisition is the company’s “first operating fleet” across the NEM, the company said, with SA’s 256MW Carmody’s Hill Wind Farm reaching financial close in December and Queensland’s 228MW Boulder Creek Wind Farm still under construction.

Adding solar generation capacity is one thing, but Nike Australia has turned its installation into an art form after it worked with Energy Aware, Dexus and Qanstruct to build a 1MW, 3,500m2 solar array on the roof of its 60,000m2 warehouse. The installation includes 2,000 500W solar panels in the shape of the iconic Nike ‘swoosh’ logo – making it the largest Nike ‘swoosh’ in the world. Nike committed to powering its owned-and-operated facilities with 100% renewable energy by 2025.


Regulation

The Australian Energy Regulator (AER) is seeking comment on its newly published draft non-disclosure guideline, which is designed to provide greater transparency around non-disclosure claims, minimise the risk of inadvertent disclosure, and incentivise network operators to make “well justified” claims. Submissions are open until March 20 and the AER is aiming to finalise amendments to the guidelines by May.

The federal government has begun its search for the inaugural head of Australia’s National Environmental Protection Agency, a newly created body that will begin operations on July 1 and provide consistent national environmental regulations that are expected to speed project approvals and provide more transparency. Minister for the Environment and Water Murray Watt said the agency is “seeking candidates with a strong track record in delivering regulatory excellence”.

Forecasts from AEMO cannot be relied upon, NSW Nationals MLC Wes Fang will argue in budget estimates today, pointing to a recent contradiction between the Medium Term Project Assessment of System Adequacy and the annual Electricity Statement of Opportunities. MT PASA showed risks of rolling blackouts where the ESOO showed none. AEMO refuted the contradiction, explaining that "The reports are well understood by industry and serve different purposes." (The Aus)


Technology

Decades of success with the technology haven’t helped French grid operator EDF control costs at the new Hinkley Point C nuclear plant it is building in England. A newly announced delay of 12 months and additional costs of €2.5 billion ($4.2 billion) have cast a shadow over the UK’s first new nuclear plant in over 3 decades. The site was originally budgeted at £18 billion ($34.4 billion) when construction began in 2017, but the new reactor is now not expected to finish until 2030 – at a total cost of £48 billion ($92 billion). (Renew Economy)


Research

Technology is not the limiting factor in delivering the energy transition, CSIRO director of energy Dr Dietmar Tourbier has said in outlining an agenda for the national science agency that will focus on bolstering capabilities in areas like carbon capture and storage and aligning regulatory, environmental and other approvals with the investment signals necessary to ensure generation capacity grows in line with demand over time. Success, Tourbier said, will be determined by Australia’s success in engaging with communities, developing and reskilling workforces, and building necessary infrastructure.


People

Environmental scientist Dr Regina Flugge has been appointed to Western Australia’s independent Environmental Protection Authority (EPA), replacing former deputy chair Lee McIntosh after she ended her term in November

Energy transition specialist investment manager Quinbrook Infrastructure Partners has welcomed Tim Horneman as Brisbane-based managing director. Horneman was previously chief commercial officer at fast-start gas peaking and grid-scale BESS specialist LD Energy. Qunibrook has also appointed Andrew Varvari, who brings over 20 years’ legal experience in energy companies and government owner utilities to the new role of Australia head of legal.

What's On

February 24
Energy Security NSW

AEMC Commissioner & Reliability Panel Chair Rainer Korte will keynote this CEDA event in Sydney also featuring ASL CEO Nevenka Codevelle, Neoen Australia Head of Development Nathan Ling, Transgrid EGM of Network Jason Krstanoski and Australian Gas InfrastructureGroup EGM Customer & Strategy Cathryn McArthur.


February 26
Energy Security Queensland

AEMC Commissioner Rainer Korte will keynote this CEDA event in Brisbane, also featuring Energy Queensland EGM Regulation, Risk and Strategy Benn Barr; Powerlink EGM, Operations Stewart Bell; APA Group Operations Executive Petrea Bradford; and CleanCo Queensland EGM Asset Operations Rimu Nelson.


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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