Latest news with #AustralianEnergyMarketOperator
West Australian
28-05-2025
- Business
- West Australian
Environmentalists slam new gas exploration sites
Environmentalists have slammed a state government's decision to open nine new gas exploration sites, claiming it will only support the international market. The Queensland government will open the new fields spanning 16,000 square kilometres across the state to tap into further gas reserves. The fields will span Cooper, Eromanga, Bowen and Surat basins in the state's regions using conventional gas extraction methods and coal seam gas. Resources Minister Dale Last said the exploration sites will be vital to finding a new supply to meet the growing demand for energy across Australia amid fears of blackouts along the east coast. "The best way to bring down energy prices is to have more energy in the market, and that starts with exploration," Mr Last said in a statement. "These steps are about unlocking new supply, securing an investment pipeline and getting the right policy settings in place so Queensland can lead the way on energy security." The Australian Energy Market Operator has previously issued blackout warnings in NSW and Queensland during summer due to high electricity demand and hot temperatures. Natural gas accounted for more than a quarter of Australia's total energy consumption in 2022-23, with 1518 petajoules used. Mr Last said "unscientific" decisions made by southern states have left Queensland carrying the load for the east coast gas market, leading to the need for more exploration. "We need a regulatory framework that supports new development, instead of holding it back," he said. But environmentalists have called the announcement devastating and deceitful. "The government should be ashamed to look Queenslanders impacted by climate-fuelled disasters in the eye, and pretend that they care," Queensland Conservation Council Director Dave Copeman said. Gas is Queensland's second-largest export behind coal, with the state producing 1550 petajoules of coal seam gas to supply both the international and domestic markets in 2024. Mr Copeman said it is a false narrative that the new exploration sites will support other states and territories when the bulk of the gas is exported. "No company is planning to pipe gas from the Bowen basin to Melbourne," he said. Other environmental advocates also say the announcement will only benefit multinational gas companies instead of Queenslanders. "The vast majority of Queensland's gas is destined for export, not for domestic use," Lock the Gate's Ellen Roberts said. She called for an urgent moratorium on the gas expansions to prevent any possible damage to the land and underground water resources regional communities rely on. The state government also announced it will carry out a three-month land release review starting on Wednesday to consider opening more gas exploration sites. The review is set to look at the needs of the energy market as well as the environmental and community impacts. It will consider changes to the land release expression of interest process, the land release area selection process, and the competitive tender process. The state government's gas expansion decision follows a previous pledge to scrap ambitious emissions reduction targets, ordering a review of the legislation. The former Labor government legislated 50 per cent emissions reduction targets by 2030, and 75 per cent by 2035. The Liberal National government has said it is committed to net zero by 2050.
Perth Now
28-05-2025
- Business
- Perth Now
Environmentalists slam new gas exploration sites
Environmentalists have slammed a state government's decision to open nine new gas exploration sites, claiming it will only support the international market. The Queensland government will open the new fields spanning 16,000 square kilometres across the state to tap into further gas reserves. The fields will span Cooper, Eromanga, Bowen and Surat basins in the state's regions using conventional gas extraction methods and coal seam gas. Resources Minister Dale Last said the exploration sites will be vital to finding a new supply to meet the growing demand for energy across Australia amid fears of blackouts along the east coast. "The best way to bring down energy prices is to have more energy in the market, and that starts with exploration," Mr Last said in a statement. "These steps are about unlocking new supply, securing an investment pipeline and getting the right policy settings in place so Queensland can lead the way on energy security." The Australian Energy Market Operator has previously issued blackout warnings in NSW and Queensland during summer due to high electricity demand and hot temperatures. Natural gas accounted for more than a quarter of Australia's total energy consumption in 2022-23, with 1518 petajoules used. Mr Last said "unscientific" decisions made by southern states have left Queensland carrying the load for the east coast gas market, leading to the need for more exploration. "We need a regulatory framework that supports new development, instead of holding it back," he said. But environmentalists have called the announcement devastating and deceitful. "The government should be ashamed to look Queenslanders impacted by climate-fuelled disasters in the eye, and pretend that they care," Queensland Conservation Council Director Dave Copeman said. Gas is Queensland's second-largest export behind coal, with the state producing 1550 petajoules of coal seam gas to supply both the international and domestic markets in 2024. Mr Copeman said it is a false narrative that the new exploration sites will support other states and territories when the bulk of the gas is exported. "No company is planning to pipe gas from the Bowen basin to Melbourne," he said. Other environmental advocates also say the announcement will only benefit multinational gas companies instead of Queenslanders. "The vast majority of Queensland's gas is destined for export, not for domestic use," Lock the Gate's Ellen Roberts said. She called for an urgent moratorium on the gas expansions to prevent any possible damage to the land and underground water resources regional communities rely on. The state government also announced it will carry out a three-month land release review starting on Wednesday to consider opening more gas exploration sites. The review is set to look at the needs of the energy market as well as the environmental and community impacts. It will consider changes to the land release expression of interest process, the land release area selection process, and the competitive tender process. The state government's gas expansion decision follows a previous pledge to scrap ambitious emissions reduction targets, ordering a review of the legislation. The former Labor government legislated 50 per cent emissions reduction targets by 2030, and 75 per cent by 2035. The Liberal National government has said it is committed to net zero by 2050.
Sky News AU
26-05-2025
- Business
- Sky News AU
‘Consequence of the rush': Energy expert attributes rising electricity bills to Labor's ‘unrealistic' renewables push, as regulator reveals transmission cost blowouts
An energy expert has attributed soaring power prices to the Albanese government's renewable energy agenda, with the Australian Energy Market Operator revealing ballooning cost blowouts to the construction of transmission lines. On Tuesday, the Australian Energy Market Operator announced that 500,000 customers nationwide could experience an eye watering 9.7 per cent rise in their power bills. The price hike was revealed in the operator's default market offer, of which serves as a price safety net that limits what energy retailers can charge customers in New South Wales, south-east Queensland and South Australia. Those residing in NSW will incur an even larger price hike than that proposed in the draft form in March and will see their power bills rise by 7.9 to 9.7 per cent, with the average bill increasing by between $155 to $228. The price increase in south-east Queensland is up by $77 or 3.7 per cent and in South Australia consumers should expect a 3.2 per cent rise amounting to a hike of $71. Aidan Morrison, the director of energy research at the Centre for Independent Studies said the trend of compounding power bills was due to the Albanese government's 'rushed' renewables energy rollout. 'I think there's two reasons now why these transmission line costs are starting to emerge, it's just way higher than they were initially ever priced, which is always unrealistic,' Mr Morrison said speaking to Sky News host Danica De Giorgio. 'There was this fantastic idea that we just provide one link into the countryside and then all the other generators would sort of link themselves into the grid. 'What's happened in reality is that link gets expanded, so we pay for the transmission lines to run right into all the generation projects that happen out in the countryside. The market operator outlined in its annual report that the cost for overhead transmission line projects had surged by up to 55 per cent, with substations also rising by as much as 35 per cent. The report concluded that if the $20 billion cost of transmission infrastructure continued to inflate then power prices would rise even further. Mr Morrison said 'the price blow out in the latest report from the market operator makes it very clear that's a consequence of trying to build everything all at once, which is exactly what's happening'. He said the 'rushed rollout of massive renewables, stipulating that everything has to be built before 2030' is causing 'huge competition for all of the materials and all of the contractors'. 'There is a price hike for all the contractors and labouring materials, so the prices go up a lot, and that's what's happening right here. 'It's a consequence of the rush, and it's an inevitable consequence." Chair of the Australian Energy Regulator Clare Savage accepted that 'there are cost pressures in the system' and the regulator was 'seeing that across each of the jurisdictions'. Speaking to Sky News Business Editor Ross Greenwood, Ms Savage accepted cost pressures relating to transmission lines were contributing to the energy price pain experienced by consumers, yet repeatedly defended the government's clean energy agenda. 'We have seen some increased costs in the transmission system from new projects like HomeLink and Project Energy Connect, and they are flowing through to bills in New South Wales in particular,' Ms Savage said. 'What I'd also say is that as we do build out this system of the future and we have greater electrification and more people use electric vehicles, we're going to see increased use of those assets, and that should lead to lower prices over time. Ms Savage reminded consumers that the default offer was used to stop retailers from setting 'unjustifiably high' prices and are 'not intended to be an efficient marker of the best price out there in the market'. 'You don't want to be on the default offer, you do want to be out there, in the markets, shopping around and getting access to the best possible prices. 'I would say though that there are probably nearly 80 per cent of customers who are currently paying more than they need to." She said that people should be shopping around for a new deal every year, and acknowledged that this was an exhausting process. 'I get tired of saying 'shop around', I can promise you, but I do think it's important and probably every year is a good idea." Roughly nine per cent of households and 18 per cent of small businesses receive default market offers.
Sky News AU
26-05-2025
- Business
- Sky News AU
Albanese government under fire for overseeing ‘energy trainwreck'
Sky News host Peta Credlin has exposed the Albanese government's 'energy trainwreck' after the Australian Energy Market Operator warned of the 'exploding cost' of the net-zero transition. 'There's more and more evidence of Labor's energy trainwreck,' Ms Credlin said. 'The confirmation today that power bills are set to soar yet again as the Australian Energy Regulator made final its initial draft determination that was released in March. 'This means price hikes upwards of nine per cent on bills, largely, the Regulator says, due to increased costs associated with wholesale electricity contracts for the coming financial year.'
Perth Now
06-05-2025
- Business
- Perth Now
Renewables influx a cooler change to summer energy mix
An influx of renewables into Australia's main energy grid has driven down emissions while helping counter price pressure from expensive coal, hydro and gas. Solar and wind chipped in 43 per cent of the main grid's supply in the first three months of 2025, up from 39 per cent over same period in 2024, while coal availability slipped to new first-quarter lows. Large-scale battery generation reached an all-time high, with output jumping 86 per cent to 98MW when averaged across all hours. Wholesale prices were higher in the southern states and lower in the north during the summer months, electricity system updates showed from both the Australian Energy Market Operator (AEMO) and Australian Energy Regulator. AEMO's report found dry conditions impacting Tasmanian hydro were largely responsible for the nine per cent increase in overall wholesale electricity prices compared to the same period in 2024, averaging $83/MWh. Yet mainland region averages slipped from $78/MWh to $76/MWh. Compared to the last three months of 2024, average wholesale prices were six per cent lower. Upward forces in coal and hydro prices were largely offset by downward pressures from higher renewable energy availability and fewer periods of extreme price volatility, AEMO executive general manager of policy and corporate affairs Violette Mouchaileh said. "Additionally, the frequency of negative pricing increased during the quarter, particularly in the NEM's (National Electricity Market) northern regions, which was largely attributable to grid-scale solar and wind setting prices more often," she said. Electricity prices tend to be very low or negative when the wind is blowing and sun is shining, allowing solar panels and turbines to generate. Price spikes occur during unusually high demand or when lower-priced generation is not available, leaving dispatchable coal, gas hydro and batteries to fill the gap at higher levels. AEMO said less coal in the energy mix and more from solar and wind drove greenhouse gas emissions to new first-quarter lows. Total emissions dived 5.1 per cent compared to the same quarter in 2024. The ongoing growth of rooftop solar continued to take pressure off the grid despite underlying demand breaking new first-quarter records as Victorians and South Australians fired up their air conditioners on hot days. The quarterly snapshot of the energy system follows a convincing federal Labor victory at the polls that should continue the transition to renewables and the retirement of coal generators. The opposition posited a nuclear pathway to an energy grid free from climate-warming emissions, yet a second term for the Albanese government should shut the door on the alternative technology for now. East coast downstream gas market spot prices sunk by 2.8 per cent from the previous quarter, to $13.17 per GJ, but were 13.7 per cent higher than the same time in 2024.
