Seizing the opportunities in Australia’s energy transformation

By Gilles Walgenwitz
General Manager, Energy Markets, Energetics

Australia’s energy landscape is changing rapidly. Over recent years, the impact of the retirement or reduced availability of ageing coal-fired power stations led to significant price volatility in the National Electricity Market (NEM), leading more and more businesses to proactively manage their energy cost risks.

At the same time, a more strategic approach to energy is driven by the need to address climate change.  Expectations around decarbonising operations and disclosing financial risks are being raised by investors, regulators and communities. Business is responding by setting science-based targets and net zero carbon reduction ambitions. 

A significant part of a net zero emissions target can be met with energy productivity improvements.   Also, the take up of behind-the-meter solar PV systems has been exponential. The penetration of renewable energy generation is posing some challenges though and is increasingly supported with investments in battery storage and demand response resources.

Offsite clean energy opportunities also contribute to the net zero emissions pathway. Corporate renewable power purchase agreements have ‘boomed’ across the NEM states.  These deals have supported the development of clean energy capacity while offering contracting businesses a hedge against market volatility and sustainability benefits.

In 2019 corporates are implementing on-site energy ‘load shaping’ opportunities and developing their own electricity market hedging strategy: managing the market risks that used to be transferred to electricity retailers. The days of setting a budget and procuring energy with a straightforward two to three-year fixed price contract are rapidly disappearing. Your energy strategy is part of your business strategy.

Gilles had presented at the recent 2019 AEBN National Conference: Environment, Climate Change and Energy as our energy expert on Australia’s energy revolution: An energy markets perspective.

For further information, please contact Gilles Walgenwitz, General Manager, Energy Markets, Energetics on (03) 9691 5500.