Jack Curtis

A new era for Australian reporting ‍ In September 2024, the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 was passed. This legislation will initially obligate the largest of Australia’s emitters and corporations from 1 January 2025.  ‍ The main requirement is for businesses to disclose information derived from scenario analysis that considers climate risks and opportunities under at least both of the following scenarios: A low global warming scenario (1.5C) A high global warming scenario (2.5C+)  ‍ In addition, businesses need to consider the impacts of identified risks and opportunities on their strategic and forecasted financial performance. ‍ What must be reported ‍ The legislation requires businesses to report the material impacts of identified risks and opportunities associated with climate change on their strategy and forecasted financial performance. This includes disclosure of: Scope 1, Scope 2, and, after the first year, Scope 3 carbon emissions.  A company’s transition plan that is defined as - “an aspect of an entity’s overall strategy that lays out the entity’s targets, actions or resources for its transition towards a lower-carbon economy, including actions such as reducing its greenhouse gas emissions.” ‍ These disclosures must be part of a sustainability report in the annual report to shareholders, alongside the directors’ report, financial report and auditor’s report.  ‍ Critically, directors must declare compliance with the legislation regarding any climate disclosures. There are also increasing assurance requirements like those required for financial reports under the Corporations Act that ratchet up after the first year. This means that auditors must sign off on the reports. ‍ 💡 In carbon reporting, Scope 1, 2, and 3 emissions refer to different categories of greenhouse gas emissions an organization must account for: Scope 1 emissions: Direct emissions from sources owned or controlled by the organization, such as fuel combustion from company vehicles or on-site manufacturing. Scope 2 emissions: Indirect emissions from the generation of purchased energy (like electricity, heating, or cooling) consumed by the organization. ‍ Scope 3 emissions: All other indirect emissions that occur throughout the organization’s value chain, including emissions from suppliers, product use, waste disposal, and employee travel. #carbonemission #australia #energysaving #energyefficiency https://lnkd.in/dnDcNEuM

2

As New Zealand electrifies, more grid-scale batteries will maximise the benefits of renewable energy and provide extra resilience during times of tight electricity supply.   You can learn about how grid-scale batteries work and how the Electricity Authority is unlocking the potential for batteries to contribute to security of supply in our latest ‘Eye on electricity’ explainer: https://lnkd.in/gWEQnvhF   #renewableenergy #securityofsupply #electricityindustry

16

1 Comment

Government investment in energy generation and storage can ensure a reliable NEM over the next decade – provided they keep up the pace. The Australian Energy Market Operator (AEMO) recently released their 2024 Electricity Statement of Opportunities Report (ESOO). It surveys current and committed investments to provide an outlook on grid reliability within the National Energy Market over the next decade. Our Takeaways: ➡ Federal and State government investment programs in new generation, transmission and storage must be delivered “in full and on time” if reliability risks are to be managed. ➡ The outlook has improved since the last ESOO. In the past year, 5.7GW of generation capacity has progressed to anticipated and committed status – of which batteries comprise 3.9GW. ➡ Consumer energy resources (CER) – meaning household solar and batteries, and certain EVs – will play an increasingly important role in grid stability. Some estimates predict CER will supply over 20% of total demand, and CER contribution to supply will reach 5 times the current supply by 2054. ➡ Queensland is leading the way in renewable energy delivery and supporting commercialisation of local battery technology. Our Outlook: The AEMO notes that “for longer duration peak demand events, battery storage duration will also influence the capability for battery projects to mitigate reliability risks." This is why evaluating and adopting long-duration batteries, like grid-scale flow batteries, will be crucial as fossil fuel generators are retired. Australia has several long-duration battery manufacturing proponents. Since its inception, the AMBC has highlighted the benefits of deploying locally manufactured products for economic development and jobs. As well as why policy support for the battery supply chain needs to be maintained to facilitate more local content in batteries. The AMBC is formulating its next stage of policy recommendations and contributions are welcome. 🔗 Find the full report linked in the comments. Department of Industry, Science and Resources, Department of Energy and Climate, Department of Resources (Queensland), Department of State Development and Infrastructure, Ed Husic MP, Paul Martyn, Mick de Brenni, Michele Bauer, Carlye Sycz, Gavin Loyden, Dominic Spooner, Tom Northcott, Allegro Energy, Redflow.

6

2 Comments

Trusting the duopoly of AEMO and CSIRO to produce a report that is unbiased because let’s face it. These two entities are renewable zealots at the taxpayers expense of course. I see in the report that they factor in ,that the nuclear power plant would have to be replaced in 30 years rebuilt and replaced What utter nonsense? A nuclear power plant in its modern guise will last between 60 and 80 years, that’s a fact Secondly, we are currently building snowy 2.0 it’s five years behind schedule. It’s already cost $13.5 billion and it’s not going to function for another five years. They have 16 km of tunnel to drill and have only completed 800 m in the last 12 months. So $17 billion for a nuclear power plant seems like an effing bargain Also, if the UAE can build a nuclear power plant in 10 years which they have, there is absolutely no reason why we can’t do the same thing Why is China still building nuclear power plants? Are they stupid? Do they think it’s not economical? No, they’re much smarter than Chris or his foot What is wrong with all of these journalists that they don’t pick this detail out? It’s pathetic watching them genuflectat at Chris Bowen‘s and Albanese feet Nuclear is by far the best long-term non-CO2 producing baseload power for this country and it’s about time we stop talking about it and just get on with building the damn things They can’t because their snouts are so deep in the renewable trough of money , it’s pathetic to watch .

2

2 Comments

Connections reform is hard, but fixing these frameworks is key to delivering the transition. The Clean Energy Council proposed a series of fixes to the connections process and the Australian Energy Market Commission (AEMC) has accordingly made a series of changes to the energy rules. This follows several years of hard work through the Connection Reform Initiative, a joint Australian Energy Market Operator (AEMO)/ CEC project, which brought together the best and brightest across AEMO, networks and the clean energy industry. The AEMC’s final rule contains the following key reforms to the connection process: - changes have been made to allow for sensible adjustment of technical performance. In response to the CEC’s advocacy, the AEMC have removed the obligation to be ‘as close as practicable’ to the previous GPS. This allows for adjustments enabling new grid forming solutions to be adopted more readily. - time limits have been created for AEMO and NSP approvals of R1 packages. AEMO now has 60 days to undertake its assessment. This is a clear improvement from the previous arrangements, which were open ended and provided no certainty as to how long projects could be kept at this stage. - AEMO and NSPs face stronger obligations to provide evidence when additional information and modelling is requested. This is a big win - requests for additional modelling have severely impacted many projects’ timelines and imposed unnecessary costs. Good to see the AEMC has listened to CEC and industry feedback on the draft rule – these new guidelines more effectively address the key uncertainties identified in our original rule change. - AEMO will have scope to ‘conditionally approve’ projects, allowing for faster progression through to energisation. This is another win – both industry and AEMO have been calling for a sensible path forward here, to allow engineering judgement to be exercised. Of course, some key issues remain to be resolved, particularly the requirement for GPS to be ‘as close as practicable’ to the Automatic Access Standard – a requirement that has led to some negative consequences over the years. There will be further opportunity to resolve these issues as the CRI progresses however – join us in the Market Investment and Grid group at the CEC to get involved! Lastly – nothing happens in NEM-land without good will and hard work. Thankyou firstly to Diane Staats, who has leapt into the fray with never a look back! Thanks also Margarida Pimentel and team at AEMO. And of course Ashok K., Tiffany O'Keefe and Marcel Lima at the AEMC, who have worked tirelessly to find a balance in this often difficult reform area. Determination here: https://lnkd.in/gjXn9mQk

95

3 Comments

🚀 2024 has been a bumper year for the NSW renewable energy project pipeline. Hats off to the Planning team at the NSW Department of Planning, Housing and Infrastructure for approving 18 renewable generation and storage projects this year, totalling more than 5 GW of generation and 2.8 GW of battery storage (see the map below). The pace of development is accelerating faster than anticipated. In 2024 alone, NSW has seen a staggering 37 GW of new project announcements, including 14 GW of wind and 14 GW of battery storage. This rapid expansion is made possible by giga-scale projects such as: - Voyager Renewables’ Energy Oasis at 2 GW (CIP) - Metlen’s Denman BESS at 2.4 GW The future of the state's renewable energy transition is taking shape, and it's exciting to see the momentum continue to grow. 2025 here we come! #RenewableEnergy #CleanEnergy #NSWEnergy #Sustainability #Renewables 

55

Agree with the AFR-sentiment Tim Buckley. I posted a Financial Times article a couple of days ago about the cost of insurance losses in 2024 (before LA fires). AFR today picks up the story about why the “LA fires will increase premiums after a benign 6 months in the reinsurance market”. https://lnkd.in/gZES6kYB The short-termism and cognitive dissonance in their (and many other media outlets) reporting of the link between the physical outputs of climate change on financial markets and all of our economic wellbeing is still infantile. Rather than quoting a climate scientist or insurance actuary we get the AFR theme of: “it’s been hot for a few years so we’ll be getting a few cold years”, mean-reversion group think. Instead, the journalist and editor should be calling out that insurance will continue to increase in cost 20-30% per annum and simultaneously become less available as the physical effects of climate change and associated insurance losses mount. How will the next generation of home buyers get a mortgage if insurers won’t / cant' insure (at any price)? How much of the ASX (and our superannuation retirement savings) is weighted to our big four mortgage lenders? As we see “the cost” of climate change playing out through the lens of high profile fire and weather catastrophies at an increasing rate, it would be wonderful to see journalistic and editorial integrity keep up....

27

A consultation paper published by the Australian Energy Market Commission (AEMC) today outlines a hybrid model approach to transmission access reform in the national electricity market.   The proposed reforms would: 👉 provide greater clarity to investors about where new renewable generation and storage projects should be located 👉 help keep system costs down for consumers 👉 help support jurisdictional renewable energy zones    Chair Anna Collyer says ‘’by 2050, the Australian Energy Market Operator (AEMO) forecasts a seven-fold increase in grid-scale wind and solar capacity and a 19-fold increase in storage capacity.    "Our proposed reforms aim to ensure that the right projects are built in the right locations, generating at the right times, benefiting both industry and household consumers,” she said.   https://bit.ly/4b8Xf7v

33

Which is it: “variable” or “Reliable”? Governments of Australia and NSW announce underwriting of more “variable renewable energy” in a “Reliable Renewables Plan” under the new Capacity Investment Scheme. Perhaps the capital letters in the media release make all the difference…? https://lnkd.in/gni62FgD. How many folks on LinkedIn think that this makes a) engineering sense b) economic sense and c) political sense. For me (in case you hadn’t guessed) it’s: a) no b) no c) maybe short term, and then another no Quote from the linked media release: “The Albanese Government today announces the largest single ever tender for renewable energy in Australia, with the first auction as part of our Reliable Renewables Plan set for late May. This national Capacity Investment Scheme (CIS) tender will target 6 GW of new variable renewable energy projects for the National Electricity Market (NEM).” My question from Nov 2023 stands: To what degree are wind and solar power like a Ponzi scheme? My answer: to a frighteningly high degree (which surprised me when I first did the comparative analysis). Answers in the comments. Link here if you’ve not read the article, or need a refresh: https://lnkd.in/gavpw4PP #Reliable #Renewables #Plan #Australia #NSW #electricity #AEMO #NEM #Capacity #Investment #Scheme #CIS

17

18 Comments

Exciting News for Australia's Energy Future! Kudos to Anthony Albanese's government and the Australian Energy Market Operator (AEMO) for unveiling a groundbreaking 25-year Integrated System Plan (ISP) to transition the National Electricity Market (NEM) to #netzero by #2050. Key highlights of this comprehensive roadmap: 🔋 Renewable Energy Transition: The ISP confirms that renewable energy, supported by storage and backed by gas, is the most cost-effective way to supply electricity as coal-fired power stations close. 90% of current coal capacity is projected to close by 2035, with all closed before 2040. 💡 Optimal Development Path (ODP): With an annualised cost of $122 billion to 2050, the ODP focuses on grid-scale generation, storage, and transmission to meet federal and state emissions reduction targets. 🔌 Transmission Needs: Nearly 10,000km of new transmission lines are needed by 2050 to integrate new generation sources and ensure reliability. Ten projects, or 2,500 km, are already underway, with seven more identified for planning and delivery. 🌞 Consumer Energy Resources: Recognising the importance of rooftop solar, batteries, smart systems, and electric vehicles in reducing costs and enhancing grid reliability. 📈 Economic and Environmental Benefits: Transmission projects costing $16 billion are expected to save consumers $18.5 billion in avoided energy costs and deliver emissions reductions valued at $3.3 billion. Over 60,000 energy jobs will be supported over the next 20 years. The ISP is a testament to the government's commitment to a sustainable and secure energy future. It guides investment in new transmission, generation, and storage, ensuring reliable, secure, and affordable electricity while meeting emissions reduction targets. By incorporating consumer energy resources and using comprehensive #economic and #engineering #analysis, the ISP offers a clear, ambitious, yet deliverable path forward. 🌏💚 This approach is especially suited to Australia, a country blessed with abundant natural resources, making it a more cost-effective and timely solution than #nuclear power, which remains #costly and currently #banned under Australian law. I am really excited to see this visionary step towards a net zero economy and a brighter, greener future for all #Australians! #NetZero #RenewableEnergy #SustainableFuture #EnergyTransition #AEMO #AnthonyAlbanese #AustraliaEnergy #CleanEnergy #FutureForward Roger Cook Reece Whitby Ed Husic MP Department of Jobs, Tourism, Science and Innovation Department of Industry, Science and Resources Science & Technology Australia

23

The Australian Energy Market Commission (AEMC) has released a consultation paper as part of its plan to design a #pricing #framework that better serves #energyconsumers.   AEMC Chair, Anna Collyer, said the #review comes at a critical time as millions of Australian households and businesses embrace new #energytechnologies known as consumer energy resources.    “With one in four Australian homes now having #solarpanels, and predictions of one in two by 2040, we need to ensure our pricing frameworks keep pace with how #consumers want to use and interact with the #energysystem.    “Research shows that effectively integrating consumer #energyresources could deliver net benefits of $6.3 billion by 2040. "Getting pricing structures right will be crucial to realising these benefits for all consumers," Ms Collyer said.

1

The Shaw and Partners September Quarter 2024 edition of the Research Monitor is out. INSIDE THIS ISSUE: ✅ Q2 2024 Performance. The best performing Australian equity sector was #Utilities, up 13.3% including #dividends. ✅ #Bauxite: It takes around 5t of bauxite to produce 2t of #alumina to produce 1t of aluminium. ✅ Utilities IT: 25% of utility billing contracts will be awarded to new entrants that will disrupt incumbent vendor offerings. ✅ Haven’t heard of #Vanadium? Vanadium Flow Batteries can provide cheap, large-scale grid #energy storage. ✅ Australia's per capita recession: Australia has been in a per capita recession, with #GDP per capita declining in six out of the last seven quarters. ✅ An introduction to #drone warfare: A key element in modern military strategy. ✅ #Gold: Record high gold prices have resulted in significant cash generation for disciplined producers. ✅ There is no cloud: Data Centre market size estimated to reach US$418 billion by 2030. ✅ Telematics in the trucking industry: EROAD is an early innovator of Electronic Road User Charges. ✅ Shaw and Partners Model Portfolio Stock Recommendations: Brambles (BXB), CSL (CSL), Domino's (DMP), IDP Education Ltd (IEL), Metcash (MTS), Mineral Resources Limited (MIN), REA Group (REA), South32 (S32), Stockland (SGP), Xero (XRO), Australian Vanadium Limited (AVL), Bannerman Energy Ltd (BMN), Credit Clear Limited (ASX:CCR) (CCR), Duratec (DUR), EROAD (ERD), Gentrack Ltd (Global) (GTK), Metro Mining Ltd (ASX:MMI) (MMI), Pioneer Credit Limited (PNC), Southern Cross Electrical (SXE), Southern Cross Gold (SXG). To receive a copy of the September Quarter 2024 edition, please email me at [email protected]

16

I have taken some time to digest the latest updates to the Queensland State Code 23 (Wind Farm Development) and associated guidelines. And to be fair, there are a lot of aspects addressed in these updates that should hopefully enhance the communities trust in the process. The value of a clear regulatory framework and more transparency is only going to improve the way the industry develops projects and remove the ability of bad actors to circumvent scrutiny. #windfarms #queensland #renewableenergy

14

2 Comments

Large-scale electricity storage is the missing piece in Australia’s clean energy transition, as highlighted in a new white paper by A/Prof Guillaume Roger from Monash Business School Energy Lab. The storage imperative: Powering Australia’s clean energy transition outlines why we need effective storage solutions to balance the supply and demand of renewable energy and meet our clean energy targets. It was a pleasure speaking to A/Prof Roger about his important work for this article: https://lnkd.in/grRgxseT #CleanEnergy #RenewableEnergy #EnergyStorage #MonashEnergy

2

The Australian Energy Market Operator (AEMO) has released updated engineering roadmaps addressing the technical barriers to renewable energy integration in Australia's electricity systems. The reports cover the National Electricity Market (NEM) and Western Australia's SWIS, focusing on the necessary technical changes as coal is replaced by renewable technologies like solar, wind, hydro, and batteries. AEMO CEO, Daniel Westerman, highlighted that renewable energy sources are already meeting 40% of Australia's energy needs, with peak contributions reaching 72% on the east coast and 84% on the west coast. The roadmaps detail progress made in the past year, including developing specifications for grid-forming inverters, electric vehicle standards, and advancing rooftop solar inverter compliance. Read more here - https://lnkd.in/g5srwEzT Source: Utility Magazine #RenewableEnergy #EnergyTransition #GridInfrastructure #TechnicalBarriers #AusEnergy

2