The dramatic rise in renewable energy generators connecting to the grid is transforming the traditional electricity supply chain – particularly small-scale embedded generators (primarily solar PV) connecting to the distribution network. This transformation is by no means smooth sailing for those involved, and there are a number of issues that have been raised impacting the…
The level of attention being directed towards service delivery models in the Australian water industry is currently at unprecedented levels, with most large water businesses now either actively assessing options for the delivery of operations and maintenance (O&M) services, or well down the path of implementing these new options. It is timely, therefore, to examine…
Much has been written about the economic challenges facing the network infrastructure that serves the National Electricity Market (NEM). Recent contributions by the Grattan Institute and the Energy Networks Association (ENA) are good examples of this. And while these contributions could be interpreted as taking opposing positions, both offer a guide to the path ahead….
The Californian Electricity market is highly progressive. The California Public Utilities Commission (CPUC) has recently mandated the purchase of 1325MW of energy storage by 2020; California’s Investor Owned Utilities (IOUs) have installed over 14 million smart meters, Pacific Gas & Electric (one of California’s largest IOUs) currently has 12 different demand response products; California has…
There is a market for On-Bill financing (e.g. Solar Financing) where a case can be made that the bill savings resulting from capital-intensive efficiency products are more than the regular repayment costs. Whilst the practice is becoming popular overseas, in Australia, the market is largely untapped … for now. Context Figure 1, below, illustrates how…
In June 2013, the Essential Services Commission (ESC) released its final decision on Victoria’s prices to apply to water and sewerage services for the regulatory period 2013/18. A high-level analysis of Victoria’s historical and forecasted capital expenditure (CAPEX) has identified an overall 50% decline in average CAPEX in the period 2008/09 through to 2107/18 (shown…
Is there a lack of meaningful competition in the electricity retail sector? The idea of Contestability has been topical lately. One of the AEMC’s many Power of Choice review recommendations is the creation of a new contestable market for Demand-Side Participation (DSP), alongside the existing contestable market for energy retailing, so that providers of demand…
The Strategic Asset Management (SAM) framework has been widely adopted by network utilities across the globe and its principles are largely applied in the design of their operating models. The electricity industry is currently facing a number of significant trends including a wider availability of more economic electricity supply alternatives (e.g. PV), falling electricity demand…
The Australian Energy Market Operator’s (AEMO) 2012 Electricity Statement of Opportunities (ESOO) represents the first demand and supply forecast under AEMO’s National Energy Forecasting Report (NEFR). And what a difference a year, and greater independence, makes. Figure 1 compares the AEMO’s forecast Low Reserve Condition (LRC) for each National Electricity Market (NEM) region between the…
Overview Network Service Providers (NSPs) operate in a regulated environment which sets a maximum limit on financial returns. However, the regulatory environment does not guarantee that firms will earn the regulated maximum or that they will recover the full value of any investment made. This article argues that a combination of rapidly changing technology and…