Latest news with #IntegratedSystemPlan
The Star
3 days ago
- Business
- The Star
Gamuda prospects enhanced by global footprint
RHB Research said the group is currently eyeing more green-related project opportunities in Australia. PETALING JAYA: RHB Research continues to favour Gamuda Bhd for its diverse geographical portfolio, the variety of jobs being tendered for renewable energy (RE)-related projects, data centres (DC) and water-related infrastructure. The brokerage firm in a report said the group is currently eyeing more green-related project opportunities in Australia. Note that Australia has raised its capacity investment scheme target to 40GW from 32GW in July, which is set to drive nearly A$52bil in solar and wind technology investments. Gamuda, via DT Infrastructure Pty Ltd, has already secured an onshore wind farm project in Queensland (RM700mil) and a solar farm project in New South Wales (RM1.8bil) in the financial year 2025 (FY25), RHB Research pointed out. In addition, the Integrated System Plan released by the Australian Energy Market Operator shows that by 2050, Australia requires 10,000km of high voltage new transmission lines to carry RE nationwide. 'There are currently AU$53bil worth of transmission projects approved – earmarked or in planning – ahead of achieving Australia's target of an 82% RE mix by 2030,' said RHB Research. In December 2024, Gamuda via a joint-venture with Seymour Whyte Constructions, was shortlisted for the AU$1.1bil Hunter Transmission Project. This ties well with Gamuda's teaming agreement with Rohas Tecnic Bhd , a leading Malaysian supplier of turnkey solutions for transmission networks in April 2024 to bid for and build Australian transmission projects. Meanwhile, RHB Research said it took comfort in Gamuda's involvement in domestic RE-related and water projects such as the Ulu Padas Hydroelectric (UPH) dam in Sabah, which is expected for operation in 2030 and North Perak Water Supply Scheme (NPWSS) slated for operation in 2031. 'They not only provide engineering, procurement, construction and commissioning opportunities with a total estimate of over RM6bil, but also an avenue for recurring income at least RM50mil per annum combined as per our projections,' said the research house. While there were no changes in its earnings estimates, RHB Research said 'we take the opportunity to impute the valuations of the UPH and NPWSS projects into our sum-of-parts valuation, with UPH having an assumed tariff of 31.5 sen per kWh (similar to the 162MW Project Oriole hydropower project in Sabah) and NPWSS having an assumed blended water tariff of RM1.48 per cubic m (average of blended tariffs of Penang and Perak) with adjustments expected to take place every three years.' Hence, RHB Research has arrived at a new target price of RM6.52 per share from RM5.86 previously. Risks include slower-than-expected job replenishment.
The Star
08-08-2025
- Business
- The Star
TNB sparks earnings as well as RE prospects
Kenanga Research said significant investments are being channelled into new transmission infrastructure. PETALING JAYA: Tenaga Nasional Bhd 's (TNB) venture in Australia's renewable energy (RE) developer Spark Renewables is expected to continue enhancing its earnings and RE portfolio. Kenanga Research said the existing 2,000MW pipeline and an additional 1,600MW of new prospects in Australia would position TNB for expansion in both its earnings base and RE portfolio. Following the research house's visit to Spark Renewables in Sydney last week, Kenanga Research said it gained valuable insights into Australia's aggressive RE transition target of 82% by 2030 from 38% currently. In 2023, TNB expanded Down Under by acquiring Spark Renewables which currently owns and operates the 120MW Bomen Solar Farm with three major development projects in the pipeline, namely the 1,000MW Dinawan Energy Hub, 400MW Mallee Wind Farm and 600MW Wattle Creek Energy Hub. All the projects are located in New South Wales (NSW) and are aligned with the state's renewable energy zone development framework. 'In addition, there are opportunities exceeding 1.6GW for Spark Renewables across NSW, South Australia and Queensland,' the research house said in a report yesterday. The Spark Renewables acquisition was funded through debt financing from Australian banks and did not require capital remittance from Malaysia. Australia's electricity sector is different from Malaysia's vertically integrated model. In Australia, the National Electricity Market (NEM) covers the eastern and southern states, namely Queensland, NSW, Victoria, South Australia, and the Australian Capital Territory, while Western Australia and the Northern Territory operate separately. 'Each state has its own regulatory authority, and the electricity supply chain is unbundled, with different entities handling generation, transmission, distribution, and retail,' the research house said. Renewables contributed 38% of the NEM's generation mix, with a target to reach 82% by 2030. Most coal-fired power plants are scheduled for decommissioning before 2040. 'According to the Energy Market Consulting associates, the last coal capacity is expected to retire by 2038, while gas-fired generation is forecast to increase from 11.5GW to 15GW by 2050,' the research house said. Meanwhile, gridscale wind and solar capacity is projected to grow six-fold from 21GW to 127GW, with storage capacity expanding from 3GW to 49GW over the same period. To support the transition, Kenanga Research stated that significant investments are being channelled into new transmission infrastructure. The Integrated System Plan by the Australian Energy Market Operator outlines about 10,000km of new transmission lines by 2050, primarily to connect new renewable generation to the grid. The research house said there are more than 1.6GW new capacity opportunities for Spark Renewables which owns and operates one generating asset – the 120MW Bomen Solar Farm in NSW. 'The company is progressing into three major greenfield development projects, namely Dinawan Energy Hub (1,000MW), Mallee Wind Farm (400MW) and Wattle Creek Energy Hub (600MW). 'In addition to the three anchor projects, Spark Renewables has a broader pipeline of over 1.6GW across NSW, South Australia, and Queensland, positioning the platform as a strategic growth vehicle in TNB's international renewable portfolio,' Kenanga Research said. There are actionable transmission projects worth A$28bil over the next decade.
News.com.au
11-07-2025
- Business
- News.com.au
Solar farms forced to switch off as poles and wire delays hamper renewable transition
Some major solar farms in Australia's southeast will be forced to shut off up to two thirds of the power they generate by 2027 as delays in building poles and wires causes major bottlenecks, the energy regulator has warned. The Australian government has set a target of 82 per cent renewable energy by 2030 — from 35 per cent in 2023 — and a 43 per cent reduction in carbon emissions. The Australian Energy Market Operator (AEMO) has previously laid out a $122 billion blueprint, known as the Integrated System Plan (ISP), for the country's electricity grid to achieve that goal without major disruption as ageing coal-fired generators are taken offline. NSW's Eraring coal plant will cease operations in 2027, followed by Victoria Yallourn coal plant in 2028. But AEMO has warned that delays and cost blowouts for a number of major transmission projects, particularly in Victoria, will severely curtail the amount of energy generated by renewable energy projects over the next two years. 'While some locations have not seen heavy congestion historically, they are nearing their current network limits and additional capacity may result in new areas of congestion,' AEMO's 2025 Enhanced Locational Information report published on Wednesday said. Major transmission projects facing delays include the $3.3 billion VNI West, a 500 kV double circuit transmission line connecting the NSW and Victorian energy grids, the 700 kilometre EnergyConnect line between South Australia and NSW, and the 190 kilometre Western Renewables Link from western Victoria to Melbourne. AEMO's analysis found no major solar farms in Victoria or South Australia were forecast to have a shut-off rate of less than 35 per cent by 2027, with that figure as high as 65 per cent for some projects. 'This is more pronounced in the near-term horizon, while improvements are seen in the medium term based on new actionable ISP projects being delivered, and as investment is made to meet required system security services which would begin to relax system security constraints,' the report said. 'Projected curtailment is particularly high in South Australia and Victoria in the near term, as these regions are further progressed in the renewable transition, and each further increase in capacity is more heavily curtailed by minimum security and export limitations.' AEMO noted that there were approximately 20 gigawatts (GW) of projects currently at the application to connect stage, as well as the 300 GW of proposed future projects under consideration by developers using a range of technical and economic considerations to identify the most viable project locations. 'Opportunities exist in all National Electricity Market (NEM) regions for renewable and firming projects to deliver energy, capacity, and network support services,' AEMO executive general manager of system design Merryn York said in a statement. 'This report presents key locational data to help investors understand where their projects are most likely to succeed, and where challenges, such as network congestion, curtailment, or energy losses, may arise. Not all locations are equal, and geographic network conditions must be a critical part of investment decisions.' AEMO's report warned some locations were already reaching 'significant levels' of congestion and curtailment. In 2024, over half of all grid-scale wind and solar generation experienced network-driven curtailment of less than 1 per cent. Wind farms averaged 1.1 per cent network curtailment, but this was as high as 4.8 per cent for some units. However for solar farms, curtailment averaged 4.5 per cent with several experiencing 'very high levels' of curtailment above 25 per cent. 'High curtailment was mainly concentrated in specific areas (particularly western New South Wales and north west Victoria), and illustrates that most transmission lines did not experience significant congestion,' AEMO said. 'The most severe network congestion arose in areas with high levels of generation connected in locations that were originally designed to service demand rather than supply. These high network congestion areas broadly overlap with the areas experiencing high levels of generation curtailment.' The Clean Energy Council, which represents a number of solar investors impacted by the forecast curtailment, told The Australian Financial Review the slow rollout of transmission was affecting investment decisions. 'As the coal fleet exits, we need new capacity in the right places and quickly,' CEC spokesman Chris O'Keefe told the newspaper. 'Large-scale solar is fast and cost-effective to build, but it's also the most exposed to curtailment, especially when system security limits or negative prices hit in the middle of a sunny day. 'In the longer term, the only durable solution is new transmission. These transmission projects are absolutely essential to unlocking new generation and maintaining momentum in the transition.'
Reuters
06-03-2025
- Business
- Reuters
US clean power investors see strong outlook despite gas plant rush
The rapid uptake of AI and cloud computing is rapidly increasing U.S. electricity demand and raising the need for 24/7 power supply solutions. Solar, wind and battery storage have dominated new power installations but data centers need a steady supply of power both day and night, requiring either dispatchable power plants or a combination of generation technologies. The growing use of electric vehicles will also require more overnight power supply as owners take advantage of lower power prices. Power demand from data centers is predicted to reach 325 to 580 TWh in 2028, compared with 176 TWh in 2023, the U.S. Department of Energy (DOE) said in December. Data centers are representing a growing share of power demand, shifting the overall shape of demand and opening up new opportunities for power generators. Virginia has the greatest concentration of data centers, hosting 536 facilities of which the vast majority are in a tiny area just west of Washington DC, according to the Data Center Map website. By 2030, data centers will require 50% of Virginia's power generation, compared with 26% in 2023, the Electric Power Research Institute (EPRI) said. Solar and wind are the cheapest form of power in many parts of the U.S. but the rising need for 24/7 power has spurred a flurry of new gas-fired power generation projects. In one example, Entergy plans to build its first gas-fired plant in Mississippi for half a century and the 754 MW facility is set to supply Amazon data centers from 2028. CHART: US planned power generation installations in 2025 For renewable energy developer RWE Clean Energy, the fundamentals of the U.S. market remain unchanged, Andrew Flanagan, CEO of RWE Clean Energy, told Reuters Events. RWE group owns gas-fired capacity in Europe but is yet to invest in U.S. gas plants. Broad-based demand growth in the coming years will "require the deployment of all available energy resources 'as part of an all-of-the-above energy strategy," Flanagan said. U.S. power demand is set to grow by at least 1.5 to 2.5% per year over the next 15 years, 'driven by data center demand, the relocation of industry and manufacturing back to the U.S. and broad-based electrification,' he said. Join hundreds of senior executives across energy, industry and finance at Reuters Events Global Energy Transition 2025, opens new tab. In one example, Arizona utility Salt River Project (SRP) aims to double the generating capacity on its power system over the next ten years to meet growing demand in the Phoenix metropolitan area, in part due to new data centers, an SRP spokesperson told Reuters Events. SRP has committed to cut carbon emissions by 82% by 2035 in its Integrated System Plan, by adding renewables, energy storage and gas-fired capacity, while retiring 1,300 MW of coal capacity. Dispatchable power Utilities and developers are seeking to build gas-fired plants to supply data centers as 'firm capacity is valued more than intermittent capacity," Patrick Finn, Senior Analyst, North America Power Markets at Wood Mackenzie, told Reuters Events. Blackstone Energy Transition Partners announced in January that it would acquire Potomac Energy Center, a 774 MW gas plant in Loudoun County, Virginia to supply local data center requirements. The plant is close to 130 existing data centers. Virginia utility Dominion Energy recently lowered its renewable energy forecast to 80% of power production within 15 years, down from 95% previously, and the company is now building a new 1,000 MW gas-fired power plant in Chesterfield County. MAP: Change in US commercial sector power demand by state Despite the surge in gas plant activity, 'renewables are still a valuable piece of the puzzle' so it makes sense for clean power developers to identify areas with large load growth, Finn said. The need for 24/7 supply boosts the business case for battery storage, although the deployment of batteries will face tariff and supply chain challenges as most are imported from China or other Asian countries, Tom Atkinson, Portfolio Manager, AXA Investment Managers, told Reuters Events. Many Big Tech companies have ambitious zero carbon goals but several are also looking to develop new nuclear plants as they seek dispatchable power capability. Anything that provides 'firm and clean capacity would be ideal', including long duration energy storage and nuclear small modular reactors, Finn said. Deployment speed While some utilities are seeking gas-fired power capacity, overall the outlook for clean power developers remains positive as solar and wind are faster to develop, have fewer supply chain constraints, and are cheaper than new gas capacity in much of the U.S., Atkinson said. Tech groups are seeking fast deployment of power resources to meet soaring AI demand and solar and wind can be built faster than gas-fired plants. Some companies are even partnering with power developers to co-locate power generation and data centers and speed up development. To minimise development times, solar and wind developers must find suitable land areas and navigate bottlenecks in grid capacity that can delay grid connections. A lack of skilled labour can also be a challenge. Surging demand from tech groups is accelerating clean power activity - download our exclusive report, opens new tab. President Donald Trump has injected fresh uncertainty into the clean energy sector by freezing federal funds pending a review and issuing policies that promote fossil fuel development, but years of cost reductions in clean power have bolstered the underlying fundamentals. Trump has also thrown his support behind a $500 billion pledge by tech groups and investors to develop infrastructure for AI facilities. Meanwhile, a lot of clean power deployment is being driven at state level, through Renewable Portfolio Standards (RPS) that require energy providers to supply a stated minimum of zero carbon power. The RPS directives 'remain binding and instruct the technology mix of new capacity," Atkinson said. "We do not think they are vulnerable to federally led change," he said.
