April Energy Roundup: National Energy Guarantee, Reliability and Consumer Data

April Energy Roundup: National Energy Guarantee, Reliability and Consumer Data

AU Energy Compliance
A huge amount of media and public commentary over the last month has been devoted to the National Energy Guarantee. However, the importance of this policy should not distract from a whole range of other possible regulatory changes, including several consultations relating to different aspects of reliability in the National Energy Market. We summarise April’s regulatory and policy announcements below. By Dr Drew Donnelly, Compliance Quarter. National Policy and Funding By far the most significant piece of energy policy released in the last month was the release and approval of the high-level design for the National Energy Guarantee (NEG).[1]Perhaps the most significant element of the NEG to be specified is that retailers will be required to meet the reliability obligation through their hedge contracting. It is expected that there will…
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Understanding the Reliability Obligation: Part 2 of the NEG Consultation

AU Energy Compliance
We recently discussed the Energy Security Board’s (ESB) consultation on high-level design for the emissions obligation in the National Energy Guarantee (https://compliancequarter.com.au/information-national-energy-guarantee/). Today we look at the second component, the reliability obligation. That is, the obligation that market retailers (and perhaps other market customers or the AEMO) have to ensure that there is sufficient dispatchable energy available for reliable energy provision. [caption id="attachment_3170" align="aligncenter" width="640"] Photo by Gabriel Spenassatto on Unsplash[/caption] By Dr Drew Donnelly, Compliance Quarter. Note, this is not a comprehensive summary of the consultation document and to see the full document and list of consultation questions go to;   http://www.coagenergycouncil.gov.au/sites/prod.energycouncil/files/publications/documents/Energy%20Security%20Board%20National%20Energy%20Guarantee%20-Consultation%20Paper_0.pdf 1.How should the ‘reliability gap’ be forecast? ESB asks how reliability pressures which would trigger the obligation might be forecast. The ESB proposes that the forecasting horizon be…
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Further information on the National Energy Guarantee

Further information on the National Energy Guarantee

AU Energy Compliance
Yesterday we received some further information on the National Energy Guarantee in the form of a consultation paper. We have summarised this for you below. Also of interest was the release of the following (thanks to the Smart Energy Council for the heads up): Climate Council energy storage report http://www.climatecouncil.org.au/battery-storage-2018 International Energy Agency report on Australia (link to report here) When we first discussed the National Energy Guarantee (NEG), details were thin on the ground. New materials have just been released by the Energy Security Board (ESB) providing a significant amount of information about how the NEG might operate and asking for stakeholder input. As this is a significant piece of reform we look at the two key components of the NEG separately. In today’s piece, we look at the…
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The National Energy Guarantee (NEG)—what we know so far

AU Energy Compliance
On 17 October, the Commonwealth Government announced that it intends to introduce a ‘National Energy Guarantee' (NEG) scheme.[1] The scheme would introduce reliability and emissions obligations for energy retailers with the goal of delivering more reliable and lower emissions generation, each year. By Dr Drew Donnelly, Compliance Quarter. In today’s piece we describe the new policy and how it may be operationalised. Note, at this stage the National Energy Guarantee is Commonwealth Government policy, but it is not law and there are several steps that need to be taken before it could be finalised (we explore this in the final section of the article). The National Energy Guarantee The reliability obligation would be set by the Australian Energy Market Commission (AEMC) and Australian Energy Market Operator (AEMO) and would set…
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