Latest news with #AustralianEnergyMarketOperator
Sky News AU
a day ago
- Business
- Sky News AU
Renewable energy zone Orana blows out costs to $5.5b from $650m, adding to list of Labor's net zero failures across regional Australia
The Albanese government's Orana renewable energy zone, which is set to cost eight times more than first estimated, has been branded as yet another net zero 'disaster' taking place across the country. Located in the NSW Central-West region and spanning 20,000 square kilometres, the Australian Energy Regulator said Orana costs has blown out to $5.52 billion from the original $650 million figure. The AER said on Tuesday said the blow out in cost, calculated by Energy Co, was based on 'development and construction capital costs', which will be charged to the consumer further down the line. The Central-West Orana Renewable Energy Zone (CWO REZ) covers more than 20,000 square kilometres around Dubbo, Dunedoo, and Mudgee and aims to generate over 6 gigawatts of renewable energy through wind, solar, and battery projects. Picture: Supplied The government operated EnergyCo said 4.5 gigawatts of electricity will be delivered by the Orana REZ transmission project - which will encompass areas such as Dubbo, Mudgee and Dunedoo - to support up to 7.7GW of energy from solar, wind and storage plants. EnergyCo said that blowout was due to 'significant challenges' in the infrastructure and electricity sectors. Institute of Public Affairs research fellow Mia Schlicht told the latest price-tag on Orana revealed that the notion renewable energy was cheap is 'farcical in reality'. 'The federal and New South Wales governments need to halt Orana now and stop destroying our affordable and reliable energy generators,' Schlicht said. 'Projects like Orana destroy regional communities, the very ones that feed and power this nation.' Environment Minister Murray Watt is yet to sign off on 10 electricity facilities involving solar, wind and batteries across the zone - including ACEN Australia's 'Valley of the Winds'. The Orana REZ is one of five planned for NSW slated to generate 12GW of renewable energy projects and 2GW of storage capacity, all of which will need transmission lines to connect to the main grid, which the Australian Energy Market Operator said would help lower energy costs. The NSW government said Orana will generate $20 billion of private investment and about 5,000 jobs at peak construction, from civil and land works to catering, graphic design and fencing. But Ms Schlicht said Orana was just one of a growing number of net zero impact zone 'disasters' which were springing up across regional Australia. The Albanese government's Orana renewable energy zone has been branded as yet another net zero 'disaster' taking place across regional Australia. Picture: Supplied 'The proposed projects in these zones are being overwhelmingly rejected by local communities because it will destroy prime farmland, and it pits neighbour against neighbour – all for very little in the way of actual energy produced, while fuelling an explosion in household energy bills,' she said. 'All of this damage is inflicted in the name of net zero, with the true costs hidden from the public and never honestly accounted for.' On Monday, Centre for Independent Studies energy analyst Zoe Hilton claimed the Albanese government's pursuit of net zero was causing power prices to "spike continuously". Ms Hilton claimed that rather than focusing on how net zero could or should be achieved, the government needed to simply ensure Australians had access to the cheapest and most reliable source of energy available.
Sky News AU
11-07-2025
- Business
- Sky News AU
Dan Tehan slams the government's energy transition as solar farms face forced shutdowns amid grid bottleneck crisis
Shadow energy minister Dan Tehan has accused the Albanese government of mismanaging Australia's energy transition, warning delays to critical infrastructure are forcing solar farms to switch off and drive power prices through the roof. His comments come in the wake of alarming new forecasts from the Australian Energy Market Operator (AEMO), which reveal that nearly every major solar farm in Victoria and South Australia will be required to curtail at least one third of their output by 2027 due to grid congestion. Some projects are expected to lose more than 65 per cent of their generation capacity. In an interview with Sky News, Mr Tehan laid blame squarely on Energy Minister Chris Bowen, accusing him of ignoring the real-world cost of the transition and failing to deliver the infrastructure needed to support it. "Well, the problem is that Chris Bowen's made a complete mess of our electricity transition,' he said. "Everywhere you look, it's a mess. And the one thing that he doesn't want to answer is, what is the cost of this mess? "We know that his plans don't take into consideration the cost of this rollout of new poles and wires. He won't put a figure on it. We now know that that's delayed. "So, what does that mean when it comes to the grid's reliability going forward, and also what does it mean for consumers?" With key projects like the $3.3 billion VNI West interconnector now facing multi-year delays, the energy grid is struggling to accommodate the surge in renewables production, leaving solar farms with no choice but to shut down during periods of peak generation. Mr Tehan also took aim at the broader approach to renewables in Victoria, where much of the grid congestion is concentrated. "It's because they've focused on this renewables only approach and they've completely demonised gas - they've completely demonised the idea that we should have gas peaking plants and now in Victoria, to try and overcome these delays, they're taking property rights away from farmers," he said. AEMO has warned that unless key transmission lines are fast-tracked, large-scale solar farms will increasingly be forced offline, even as coal plants close and the grid becomes more dependent on renewable sources. For Mr Tehan, the solution lies in abandoning the narrow focus on renewables and adopting a more balanced, technology-neutral strategy. "If they had a technology-neutral approach we wouldn't be in the mess that we are in at the moment," the shadow energy minister said. "Everyone says we need more gas into the systems and rather than running roughshod over communities when it comes to putting increased grid costs on everyone, look at simple things you can do right here and how to alleviate costs on power bills, but also making sure that you're going to have a much more stable system going forward." The Coalition has long criticised Labor's handling of the energy transition, arguing that excluding technologies like gas from the long-term plan would put Australia's energy security at risk. With energy prices continuing to rise and reliability coming under threat, Mr Tehan said Australians are being left to pick up the tab for policy failure. "The message from these customers to Chris Bowen, who is sunning himself in the Pacific Island at the moment, is they want an apology because Chris Bowen promised these customers a $275 reduction in their power bills, and yet here he is when they get another increase saying, 'oh, we've got this under review'. 'Everywhere you look, it's just a mess."
AU Financial Review
27-06-2025
- Business
- AU Financial Review
Grid operator warns coal shutdowns could prolong blackouts
Households and businesses could face up to a full day without power in the event of a major system-wide blackout because investment in critical grid-stabilising technologies is not keeping pace with the planned closure of coal-fired power plants. The warning from the Australian Energy Market Operator comes just months after a major blackout on the Iberian peninsula left more than 50 million electricity consumers in Spain and Portugal without power for around ten hours.
Sky News AU
25-06-2025
- Business
- Sky News AU
‘Drastically increase network costs': Top energy expert says Victorian gas bans to hurt small businesses and shrink manufacturing capabilities
Top energy experts have condemned the Victorian Allan government's sweeping gas bans arguing that as households are weaned off the system manufacturers and small businesses will consequently bear the brunt of the rising costs to extract gas. The Allan government announced on Tuesday it would move to scrap its policy to force owner-occupiers to switch from gas heating to electric systems when they expire after receiving intense backlash from consumers and industry magnates. The Victorian government unveiled a number of measures in 2023 which sought to phase out the use of gas in the state, yet has since softened multiple pieces of the policy. The draft plans would have forced hundreds of thousands of Victorians still reliant on gas heaters and cooktops to shift to electric models as part of the government's net zero emissions pathway. However, the government is continuing to persist with numerous elements of the policy raising the ire of energy analysts. These include requiring all gas hot water systems to be replaced with electrical alternatives once they break down and all new homes and commercial buildings having to be built completely electric from 1 March 2027. While Premier Allan claimed the move would push down household electricity bills, Senior Energy Analyst at MST Financial Saul Kavonic said that despite minor amendments being made, the policy would significantly reduce the states manufacturing base which is already at record lows. 'What is telling in this backtrack in Victoria and a big part of it is what's starting to dawn on the Victorian government is if they actually were successful in going down their path of reducing gas usage for heating, what it actually does is it starts to drastically increase the network costs on the manufacturing base,' Mr Kavonic said. Mr Kavonic who has worked in the sector for over 15 years said that the remaining manufacturers in the state would 'then have to cover a much larger portion of that fixed infrastructure amortisation,' as the cost of gas became more expensive as demand decreased. 'You'll see an even further hastening of the deterioration of the manufacturing and small business sector in Victoria,' Mr Kavonic reiterated. Energy analysts outlined that if hundreds of thousands of homes were swapped over to electricity-based services, then the grid would be overloaded in the short term, potentially putting the viability of the entire system at risk. The government back down delayed all changes to energy rules which were set to commence next year to March 1, 2027. Victoria faces crippling gas shortages by 2029 according to the Australian Energy Market Operator as existing supplies in the Bass Strait have dried up. Mr Kavonic said the government's alternating position risked threatening investment in critical gas exploration projects further. 'A lot of industry folks over the last 12 hours have been questioning if the energy minister in Victoria Lily D'Ambrosio has effectively been overruled by her own party in this, because she's been one of the biggest advocates of demonising gas use and getting our customers off gas,' he said. 'What's really important is if Victoria actually wants to fix their gas supply security issue they need to have a very clear statement backed up by actions that they see a role for gas in the future.' Mr Kavonic said the appetite for investment into gas security was "still not going to return" given the Allan government was "ultimately sitting on the fence here and only partly walking it back". The government says that by 2029 there will be a reduction of 12 petajoules of gas in every household and business which they argue will help fuel industrial capacities.
9 News
24-06-2025
- Business
- 9 News
Victoria significantly pulls back on its plan to phase out gas home appliances
Your web browser is no longer supported. To improve your experience update it here The Victorian government has revised its plan to phase out gas appliances in homes and businesses, with scaled-back regulations to focus only on gas hot water systems. From March 1, 2027, gas hot water systems in Victorian homes and businesses will be replaced by electric alternatives, like a heat pump, once they reach their end of life. But earlier plans to replace gas home appliances with an electric substitute once they need fixing have been dropped, with repairs permitted until they can no longer be mended. From March 1, 2027, gas hot water systems in Victorian homes and businesses will be replaced by electric alternatives, like a heat pump, once they reach their end of life. (Nine) The gas-related measures for residential and commercial properties form part of the government's aim to reserve dwindling supply for industry and drive down energy bills. The government is hoping to avoid a gas shortfall projected by the Australian Energy Market Operator (AEMO), which forecast a shortage of the energy resource in Australia south-eastern states by 2029. "We know we need to continue to work hard in the energy space to both secure energy supply and also drive down bills," Premier Jacinta Allan said. "That is about securing our gas supply into the future for the industry that needs it but at the same time looking at how we can protect local jobs and slash household bills." Households will be able to keep their gas heating and cooktops after the government dropped plans to phase them out following industry concern. The government says the hot water system switch will save households around $330 a year, or $520 with solar. Households will be able to keep their gas heating and cooktops after the government dropped plans to phase them out. (Nine) The government is standing firm on its plan to have all newly built homes completely electric from 2027. Again, the government has promised savings that will put about $880 back in the pockets of new homeowners, or $1820 if they have solar. From January 1, 2027, all new homes will be built all electric. This will put around $880 per year back in the pockets of new homeowners, or $1820 if they have solar. There will be exemptions if installation costs for upgrades is too pricey. The new measures will also apply to rental properties, including public housing, with landlords required to replace gas heaters with reverse-cycle air conditioning at end of life. Victoria Melbourne Australia national energy CONTACT US
