12.1 C
Byron Shire
July 5, 2022

Winds of change sweeping in energy markets

Latest News

Crabbes Creek Woodfired

By V. Cosford There’s a contingent of Europeans who don’t mind travelling a considerable distance in order to stock up...

Other News

First Nations place-names under Ballina council spotlight

Greater efforts at reconciliation with First Nations people in the Ballina Shire when it comes to place-names is to happen after furious agreement at June’s council meeting.

Koori Mail wins NAIDOC Week award

Local media outlet and responder to the February and March floods, the Koori Mail was honoured at the annual National NAIDOC Week Awards held on Narrm Country on Saturday evening.

Very wet and very dry: unprecedented droughts and hyper-damaging floods in the future

The world will be pushed to more weather extremes in coming decades, according to two studies which carry stark warnings of floods and droughts, respectively.

Contentious Bruns DA before Council again

A controversial decision by Byron Council to approve a mixed-use development in Brunswick Heads could be overturned, after a group of councillors who oppose the plan got the numbers for a rescission motion.

Bike path? 

Byron Councillors please note: A painted line on the side of the road is NOT a (safe) bike path. Paul...

After two-year delay Byron Shire gets to host the NSW junior golf championships

For the first time in almost 20 years, the NSW Junior Championships and JNJG State Age Championships are being...

Research from carbon analytics firm, RepuTex, indicates that growth of wind capacity in the Australian National Electricity Market (NEM) is expected to outstrip growth in electricity demand by more than 2.5 times over the next seven years, as the Australian market seeks to meet its Renewable Energy Target (RET) in the face of weak electricity demand and a rising gas price.

According to RepuTex’s Quarter 1 Power and Renewable Update, the considerable growth of wind generation, driven by higher forecast Renewable Energy Credit (REC) prices, is likely to result in the gradual drop-off of natural gas and brown coal output as the economics begin to favour renewable energy in Australia – sooner rather than later.

According to RepuTex’s associate research director Bret Harper, Australia will see re-investment in stalled wind projects as early as 2015, as REC prices begin to rebound.

‘The oversupply of RECs will continue to suppress the REC price through 2014; however, new renewable capacity will likely be required as early as 2015 as power companies begin to run out of RECs created in the small-scale technologies portion of the RET,’ said Mr Harper.

‘Over 11,000 MW of capacity will be required over the next seven years to fill the gap to the RET, which equates to more than 2.5 times forecast market demand. If we see that amount of RECs come online, we would expect carbon intensity to drop by around 10 per cent through to 2020, and the economics of the market will significantly change to favour low-carbon fuels.’

According to the report, growth in wind output is likely to keep wholesale electricity prices low, which is bad news for marginal coal operators.

‘Even as demand grows through to 2020, newly built wind capacity will operate at low cost, ensuring that competition for generation will remain fierce in the foreseeable future. We anticipate wholesale prices will remain low, which is likely to keep many of the marginal coal generators, such as those who have been forced to reduce generation this quarter, out of the market’, said Mr Harper.

With brown coal forecast to decline throughout the decade, the future of natural gas in Australia is also called into question by the report.

‘As REC prices increase between 2015 and 2020, making wind more competitive to build, we anticipate over 80 per cent of new capacity will come from wind sources.

‘Natural gas output is forecast to decline as it struggles to compete with cheaper black-coal alternatives in the short term, and from there it is unlikely to get any support from a softening carbon price beyond FY2016. But from around that time, east coast LNG projects come online, bringing domestic gas prices up to international levels’

‘Conversely, prospects continue to look positive for renewables even if the carbon price does not reach the heights of Treasury predictions during this period,’ said Mr Harper.


Support The Echo

Keeping the community together and the community voice loud and clear is what The Echo is about. More than ever we need your help to keep this voice alive and thriving in the community.

Like all businesses we are struggling to keep food on the table of all our local and hard working journalists, artists, sales, delivery and drudges who keep the news coming out to you both in the newspaper and online. If you can spare a few dollars a week – or maybe more – we would appreciate all the support you are able to give to keep the voice of independent, local journalism alive.

1 COMMENT

  1. Why not do away with coal, gas. wind, solar, tidal, geothermal power all together by developing LFTR technology.
    China, India, France and Russia are way ahead of us in this field of research.
    We have the scientists here in Australia just waiting on funding and the go-ahead to develop LFTR power but we don’t have the politicians with the foresight.
    https://www.youtube.com/watch?v=-k2cWD2mjhQ

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stone & Wood’s Brewery Festival Returns

Stone & Wood are opening the gates to their Murwillumbah brewery with the return of their ‘Murbah Open Day’, on Saturday 6 August. Welcoming the...

Decades of volunteering earn prestigious NSW Sports Award

Brenda Zakaras and John Beasley from Lennox Head were two of 19 sports volunteers from a wide cross-section of sports who received a Distinguished...

Happy New Year!

We all know we can help the planet by reducing our single-use footprint, so why not make a new (financial) year resolution that’s an...

Bangalow clinches thriller in rugby derby against Byron Bay

Bangalow beat Byron Bay on the final bell 21–20 in front of a home crowd last Saturday after a tough and hard fought contest...