The document summarizes recent trends in Australia's energy and utilities sector according to Cassandra Hogan of KPMG Australia. There has been a shift toward more customer-centric markets and increasing penetration of renewable energy. Recent policy reforms aim to facilitate competition in energy services. Major challenges for executives include managing changes in generation, demand management, and ensuring reliability amid climate policy uncertainty. Privatization, renewable projects, and gas infrastructure are driving M&A activity. Looking ahead, policy focus will be on system security, gas market reforms, and integrating energy and emissions reduction policies.
The Overall Energy Ecosystem In Australia And How It Is TransformingIan McLeod
A cleaner, secure and affordable energy future is a balanced and achievable outcome for Australia. Can we move from the chaos of the past to an orderly transition.
The annual report from New England's regional power system operator. The report details the transition happening in New England--away from coal and nuclear and to natural gas to create the electricity needed for the region. Natgas is CRITICAL to New England--and more pipelines are needed to get it there.
See page 10 for Professor Jillian Anable's contribution on low carbon transport and air quality.
www.ukerc.ac.uk/news/ukerc-calls-for-urgent-action-on-uk-energy-during-this-parliament-.html
Copyright UKERC.
The Australian National Energy Market has seen significant increases in the price of electricity. How has this happened in a continent blessed with energy resources?
The Overall Energy Ecosystem In Australia And How It Is TransformingIan McLeod
A cleaner, secure and affordable energy future is a balanced and achievable outcome for Australia. Can we move from the chaos of the past to an orderly transition.
The annual report from New England's regional power system operator. The report details the transition happening in New England--away from coal and nuclear and to natural gas to create the electricity needed for the region. Natgas is CRITICAL to New England--and more pipelines are needed to get it there.
See page 10 for Professor Jillian Anable's contribution on low carbon transport and air quality.
www.ukerc.ac.uk/news/ukerc-calls-for-urgent-action-on-uk-energy-during-this-parliament-.html
Copyright UKERC.
The Australian National Energy Market has seen significant increases in the price of electricity. How has this happened in a continent blessed with energy resources?
ANU Energy Green Paper Forum presentation by Department of Industry Energy Wh...Adhityani "Dhitri" Putri
Presentation by Margaret Sewell, head of the Energy White Paper Taskforce, Department of Industry at the ANU Energy Green Paper Forum, 15 September 2014. The release of the Energy Green Paper is imminent. The Taskforce was present throughout the proceedings to take note of questions and recommendations.
By Steven Fries, Chief Economist at DECC
Presented at 'Staying on Target: Securing the UK's Energy Future in Challenging Times'; an event organised by the UK Energy Research Centre, on Wednesday 30 April 2014, 14.00-19.00, in London, United Kingdom.
From the rise of connected devices at home, to automated industrial production processes and smart mobility, digital technologies are increasingly changing how, where and when energy is consumed. The IEA’s latest report, Digitalization & Energy, is the first-ever comprehensive effort to depict how digital technologies could transform the world’s energy systems. The report examines the impact of digital technologies on energy demand sectors, looks at how energy suppliers can use digital tools to improve operations, and explores the transformational potential of digitalization to help create a highly interconnected energy system. The report also explores the wider policy implications of increasing connectivity and automation, including for energy security, energy access, employment, data ownership, and privacy. For more info, contact: digital@iea.org.
This Independent Review into the Future Security of the National Electricity Market Preliminary Report identifies the complex forces driving a rapid transition across the electricity sector. It seeks input on key questions to navigate the transition in line with consumer expectations for a secure and reliable service, at an affordable price, that delivers on our national emissions reduction commitments.
Dr Finkel and the Panel welcome submissions responding to the Preliminary Report. The submission period is open until 21 February 2017.
By Prof Pete Smith, University of Aberdeen
Presented at 'UK Energy System in Transition: Technology, Infrastructure and Investment'; an event organised by the UK Energy Research Centre, ClimateXChange and the Edinburgh Centre for Carbon Innovation, on Tuesday 1 April 2014, 14.00-17.00, in Edinburgh, United Kingdom.
By Prof Jim Watson, UKERC
Presented at 'Staying on Target: Securing the UK's Energy Future in Challenging Times'; an event organised by the UK Energy Research Centre, on Wednesday 30 April 2014, 14.00-19.00, in London, United Kingdom.
Watch World Energy Outlook 2017 authors discuss the outlook for power, renewables, and energy efficiency following the release of World Energy Outlook 2017: http://bit.ly/2zcIAsL
The International Energy Agency’s annual benchmark for tracking energy investment, World Energy Investment 2019 provides a full picture of today’s capital flows and what they might mean for tomorrow’s energy sector. It assesses whether the frameworks and strategies put in place by governments, the energy industry, and financial institutions are spurring timely investment, and how spending across sectors and technologies matches with the world’s energy security and sustainability needs.
ANU Energy Green Paper Forum presentation by Department of Industry Energy Wh...Adhityani "Dhitri" Putri
Presentation by Margaret Sewell, head of the Energy White Paper Taskforce, Department of Industry at the ANU Energy Green Paper Forum, 15 September 2014. The release of the Energy Green Paper is imminent. The Taskforce was present throughout the proceedings to take note of questions and recommendations.
By Steven Fries, Chief Economist at DECC
Presented at 'Staying on Target: Securing the UK's Energy Future in Challenging Times'; an event organised by the UK Energy Research Centre, on Wednesday 30 April 2014, 14.00-19.00, in London, United Kingdom.
From the rise of connected devices at home, to automated industrial production processes and smart mobility, digital technologies are increasingly changing how, where and when energy is consumed. The IEA’s latest report, Digitalization & Energy, is the first-ever comprehensive effort to depict how digital technologies could transform the world’s energy systems. The report examines the impact of digital technologies on energy demand sectors, looks at how energy suppliers can use digital tools to improve operations, and explores the transformational potential of digitalization to help create a highly interconnected energy system. The report also explores the wider policy implications of increasing connectivity and automation, including for energy security, energy access, employment, data ownership, and privacy. For more info, contact: digital@iea.org.
This Independent Review into the Future Security of the National Electricity Market Preliminary Report identifies the complex forces driving a rapid transition across the electricity sector. It seeks input on key questions to navigate the transition in line with consumer expectations for a secure and reliable service, at an affordable price, that delivers on our national emissions reduction commitments.
Dr Finkel and the Panel welcome submissions responding to the Preliminary Report. The submission period is open until 21 February 2017.
By Prof Pete Smith, University of Aberdeen
Presented at 'UK Energy System in Transition: Technology, Infrastructure and Investment'; an event organised by the UK Energy Research Centre, ClimateXChange and the Edinburgh Centre for Carbon Innovation, on Tuesday 1 April 2014, 14.00-17.00, in Edinburgh, United Kingdom.
By Prof Jim Watson, UKERC
Presented at 'Staying on Target: Securing the UK's Energy Future in Challenging Times'; an event organised by the UK Energy Research Centre, on Wednesday 30 April 2014, 14.00-19.00, in London, United Kingdom.
Watch World Energy Outlook 2017 authors discuss the outlook for power, renewables, and energy efficiency following the release of World Energy Outlook 2017: http://bit.ly/2zcIAsL
The International Energy Agency’s annual benchmark for tracking energy investment, World Energy Investment 2019 provides a full picture of today’s capital flows and what they might mean for tomorrow’s energy sector. It assesses whether the frameworks and strategies put in place by governments, the energy industry, and financial institutions are spurring timely investment, and how spending across sectors and technologies matches with the world’s energy security and sustainability needs.
A new report just issued by the New England Coalition for Affordable Energy says New England is at a much greater risk for higher energy costs in the short-term because of lack of new pipelines.
In mid-2015, the Large-scale Renewable Energy Target (LRET) was reduced from 41,000 gigawatt-hours (GWh) to 33,000 GWh by 2020. The positive for the industry was that the amended legislation ended almost two years of uncertainty and frozen investment. The amendment also removed the provision for a review of the scheme every two years, locking in certainty for the rest of the decade. While 2015 was a tough year, it ended with much optimism. According to analysis by the Clean Energy Council and ROAM Consulting (now part of EY) , the revised target is expected to create more than $10 billion worth of investment and more than 6500 new jobs in large-scale renewable energy alone. Including the economic benefits from the small-scale scheme, the total benefit expected is $40.4 billion worth of investment and 15,200 jobs.
Il World Energy Focus, nuovo mensile online della WEC's community, una e-publication gratuita per essere sempre aggiornato sugli sviluppi del settore energetico. Il World Energy Focus contiene news, interviste esclusive e uno spazio dedicato agli eventi promossi dai singoli Comitati Nazionali.
Il World Energy Focus, nuovo mensile online della WEC's community, una e-publication gratuita per essere sempre aggiornato sugli sviluppi del settore energetico. Il World Energy Focus contiene news, interviste esclusive e uno spazio dedicato agli eventi promossi dai singoli Comitati Nazionali.
The Economics of Transitioning to Renewable Energy SourcesChristo Ananth
Christo Ananth, Rajini K R Karduri, "The Economics of Transitioning to Renewable Energy Sources", International Journal of Advanced Research in Basic Engineering Sciences and Technology (IJARBEST), Volume 6,Issue 2,February 2020,pp:61-68
Marc Montalvo, Daymark Energy Advisors President and Principal Consultant, was a featured speaker at the PJM Symposium "Grid 20/20: Focus on Public Policy Goals and Market Efficiency" on August 18, 2016. Find the full set of his slides from the event here, or view the event recording at http://www.pjm.com/committees-and-groups/stakeholder-meetings/symposiums-forums/grid-2020-public-policy-goals-mkt-efficiency.aspx
The homes we build today must meet the needs of tomorrow.
As we work towards a global goal of zero net emissions by 2050, Australia’s home building sector faces a monumental challenge.
Our homes already produce around 13 per cent of Australia’s greenhouse gas emissions. If our population continues to grow at its current rate, to an estimated 31 million people by 2030, we will need to construct as many as 197,000 homes a year. Whether these homes help or harm our planet is up to us.
Sustainable homes require less energy to heat and cool, enhance occupant comfort and are more resilient to climate and weather extremes.
Sustainable homes can also be a driver for economic growth. Preliminary economic modelling undertaken by the CRC for Low Carbon Living and ASBEC has found that accelerating Australia’s transition to sustainable housing would deliver more than half a billion dollars of extra investment in the construction industry by 2030 and create over 7,000 new jobs. It would also save Australians $600 million on their energy bills.
These are big opportunities. But we have found several significant challenges that must be overcome first. Consumers are unclear of their choices – and are baffled by the terminology that describes sustainable features and technologies. Home builders are locked into business models and supply chains that limit innovation. And financiers don’t value sustainable homes.
The CRC for Low Carbon Living and ASBEC have worked with industry partners and government to identify what’s needed to grow a thriving market for better quality, sustainable and liveable homes.
We have developed this ‘Sustainable Homes Transition Roadmap’ to accelerate action, with four clearly defined steps: differentiate sustainable housing in the market; train and reward the construction industry; build awareness; and broadcast the positive business case.
Australia’s world-leading approach to sustainability in the commercial sector underscores the opportunity. We have the skills, knowledge and technologies at our disposal. Now we must create the right policies and incentives to help Australian consumers capture the benefits of sustainable homes.
Prof. Deo Prasad
CRC for Low Carbon Living
Governor Murphy, through Executive Order 28, has set New Jersey on the path toward transitioning to 100% clean energy by 2050.
In June, the Board of Public Utilities (BPU) issued a draft of an updated Energy Master Plan (EMP) that encompasses a dramatically broader scope than previous EMPs, and features a series of seven strategies that will guide the state to address the imminent threat of climate change and to reach Governor Murphy’s 100 percent clean energy goal.
This timely webinar features experts who will provide an overview of the EMP draft, and how it has the potential to result in significant economic benefits, including the creation of new jobs, industries and workforce development opportunities for the state’s residents and business community.
The NJ BPU is accepting comments on the EMP draft until September 16th. Please join us so that you can add your voice with others in the sustainable business community to help make the EMP a strong and effective roadmap to creating a clean energy economy.
The ScottMadden Energy Industry Update – August 2014ScottMadden, Inc.
We are pleased to announce our Summer 2014 issue of the ScottMadden Energy Industry Update. This semi-annual publication offers our view of major events and emerging trends in the energy industry.
The energy and utility industries continue to anticipate and react to potential fundamental shifts in the 100+ year-old model of investment, regulation, and earnings. Policy and regulatory changes are big factors driving the design of the new landscape. For many of these changes, significant investment in existing and new infrastructure is needed across all parts of the energy value chain. And by the way, load growth is no longer, so investment and cost recovery are uncertain. Themed “I Feel the Earth Move under My Feet,” this issue surveys a broad array of strategic issues.
For more information, please visit www.scottmadden.com.
2. A N N UA L R E V I E W • E N E R G Y & U T I L I T I E S 2 0 1 7
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A N N UA L R E V I E W • E N E R G Y & U T I L I T I E S 2 0 1 7
AUSTRALIA
CASSANDRA HOGAN
KPMG AUSTRALIA
HOGAN: In Australia, market forces are changing the energy and utilities
sector with a shift in customers moving toward the centre of the energy
market. The competitive landscape is dynamic, with all competitors
attempting to ‘own the customer’ with an ever increasing convergence in
products and services. New retailers have entered in the market, second tier
retailers have increased their market share and market concentrations have
declined for the large national energy providers. In response to the changes
in the market, retailers and distributors are establishing new energy business
units to defend against potential disruption and disintermediation. Enabling
technologies, such as smart meters, solar PV, battery storage and microgrids,
are creating opportunities for customers to choose how their energy is
sourced and used. Australia now has approximately 1.5 million ‘prosumers’
with solar PV on their rooftops.
HOGAN: Australia’s energy markets are changing dramatically with a
revolution in the way supply and demand interacts due to rapid technological
change,the increasing penetration of renewable energy,a more decentralised
generation system, withdrawal of traditional base load generation and
changing consumer demand.Policy reforms introduced in 2016 have focused
on facilitating competition in new energy services and included opening up
competition in metering services by removing networks monopoly in order
to give consumers more opportunities to access a wider range of new energy
products and services, as well as ring-fencing obligations on networks to
prevent abuse of monopoly position in new energy services.
Q COULD YOU OUTLINE
SOME OF THE MAJOR
TRENDS IN THE ENERGY
AND UTILITIES SECTOR IN
AUSTRALIA OVER THE LAST
12-18 MONTHS?
Q HAVE THERE BEEN ANY
NOTABLE ENERGY POLICIES
AND REGULATIONS
INTRODUCED IN AUSTRALIA
OVER THE LAST YEAR OR SO?
3. A N N UA L R E V I E W • E N E R G Y & U T I L I T I E S 2 0 1 7
FEBRUARY 2017 • FINANCIER WORLDWIDE • REPRINT
Q WHAT PARTICULAR RISKS
AND CHALLENGES ARE
ENERGY EXECUTIVES FACING
IN TODAY’S MARKET?
HOW ARE THESE FACTORS
IMPACTING BUSINESS
ACTIVITIES?
8www.financierworldwide.com
AUSTRALIA • CASSANDRA HOGAN • KPMG AUSTRALIA
HOGAN: The major challenge for industry executives is to address and
successfully pre-empt the widespread and increasingly rapid amount
of change in the industry. This includes managing the impact of changes
in generation mix, increasing customer demand management, new retail
pricing models and critical issues of energy reliability and carbon constraints.
At a national energy market level, one major risk is the lack of political
consensus on how to address climate change through the appropriate mix
of energy policies and mechanisms. Instead of consistent national emission
reduction and renewable energy targets, each state is setting its own targets
to attract green jobs. The Australian energy market operator has reported
that power system security is at risk in South Australia because it has one
of the world’s highest proportions of wind generation, relative to its load.
Despite uncertainty over climate policy, energy companies are still investing
in renewable energy under the current targets. One Australian retailer has
announced that it will investAU$1.5bn in new wind and solar projects across
eastern Australia as part of a move toward renewables, while another has
signed a 15-year contract with a solar farm in northern NSW, which can
power 24,000 homes.
HOGAN: With greenhouse gas emissions of approximately 200 Mt CO2-e,
representing 35 percent ofAustralia’s annual total and an emissions intensity
that is among the highest in the world,the power sector will play a major role
in meetingAustralia’s commitments under the ParisAgreement and beyond.
Australia’s historical predominance of coal fired generation offers much
opportunity for emission reduction, which will likely be driven by a move
toward lower intensity fuels, a larger proportion of renewable energy and the
gradual retirement of ageing and uneconomic assets.The current electricity
sector emissions cap under the government’s safeguard mechanism is
unlikely to provide significant downward pressure on the sector’s emissions
for several years.
Q IN YOUR OPINION,
HOW WELL IS THE
SECTOR RESPONDING
TO ENVIRONMENTAL
CHALLENGES AND
SUSTAINABILITY ISSUES?
4. A N N UA L R E V I E W • E N E R G Y & U T I L I T I E S 2 0 1 7
Q TO WHAT EXTENT ARE
CLEAN-FUEL TECHNOLOGIES
AND UNCONVENTIONAL
GAS BECOMING A MORE
ATTRACTIVE PROPOSITION
FOR ENERGY FIRMS?
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A N N UA L R E V I E W • E N E R G Y & U T I L I T I E S 2 0 1 7
HOGAN: Unconventional gas plays a key role in theAustralian energy sector.
Australia has significant resources of unconventional gas,including coal seam
gas (CSG), shale gas and tight gas. Unconventional gas produced in Australia
is predominantly CSG – its production accounted for approximately 40
percent of Eastern Australian gas production in 2015. Most CSG production
is in Queensland, where major LNG facilities use CSG as a supply source.
Many CSG production wells use hydraulic fracturing, which has faced strong
opposition from environmental organisations and the community. Growing
opposition to hydraulic fracturing has become a major issue for future
development of coal seam gas industry in Australia. The market for clean
fuels has been challenging inAustralia – this is partially due to low oil prices.
A blend of 90 percent unleaded petrol and 10 percent fuel ethanol is available
through many petrol stations, especially closer to the sources of production
in Queensland and New SouthWales.
HOGAN: Privatisation of electricity networks in NSW has been a major
driver of M&A activity in the Australian energy market. InWestern Australia,
the state government has announced plans for the sale of a 51 percent
interest in its electricity transmission and distribution company. Both NSW
and WA state governments are seeking to redeploy the proceeds of sale of
their electricity networks into development of other essential infrastructure
in transport, education and health. Other major transactions included the
sale of gas pipeline assets and a recent bid by a Chinese consortium for an
Australian owner of gas pipelines, electricity networks and generation. The
renewable energy sector has also been a major driver of M&A activity in
Australia with both strategic and institutional investors seeking opportunities
to invest in wind farms and grid-scale solar PV.
HOGAN: Governments will want to ensure that energy policy promotes an
efficient,secureandreliableenergysystemthatkeepspricesaslowaspossible
for consumers while managing emissions.Energy policy in 2017 will focus on
three areas, firstly, promoting system security as the market transitions to
new technologies and renewables.The recent SA black-outs highlighted the
“Governments will want to ensure that energy policy promotes an
efficient, secure and reliable energy system that keeps prices as
low as possible for consumers while managing emissions.”
AUSTRALIA • CASSANDRA HOGAN • KPMG AUSTRALIA
Q WHAT FACTORS ARE
DRIVING DEALS IN TODAY’S
MARKET? ARE THERE ANY
SEGMENTS OR REGIONS
THAT SEEM TO BE OFFERING
AWEALTH OF M&A
OPPORTUNITIES?
Q WHAT MAJOR
DEVELOPMENTS DO YOU
EXPECT TO SEE GOING
FORWARD? WHAT ISSUES
5. A N N UA L R E V I E W • E N E R G Y & U T I L I T I E S 2 0 1 7
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need to ensure that policy frameworks are sufficient to cope with increasing
volumes of renewable energy and higher uptake of distributed generation.
The second major focal point of energy policy in 2017 will be redesigning the
east coast gas market to free up gas trading and deliver efficient gas markets.
Governments will introduce reforms making it easier to buy and sell gas
in redesigned gas markets which will increase competition and lower costs.
This will also improve the power system’s ability to integrate renewables like
wind and solar. Finally, energy policy will focus on the integration of energy
and emissions reduction policy. Greater integration of emissions reduction
and energy policy is likely to be required to order to maintain and enhance
an efficient, safe, secure and reliable energy system that keeps prices as
low as possible for consumers and promotes certainty for investors. In a
customer centric energy sector, customers will increasingly dictate where
they source their electricity.The Energy Networks Association (ENA)/CSIRO
Electricity Network Transformation Roadmap suggests that, by 2027, with
the right policy settings, over 40 percent of customers will have adopted on-
site distributed generation supported by energy management systems.
Cassandra Hogan
Power & Utilities Leader - Australia
KPMG
+61 2 9455 9642
cjhogan@kpmg.com.au
home.kpmg.com
Cassandra Hogan is KPMG’s national sector leader for power and utilities. She has extensive experience in the
sector, including 16 years in the energy industry and 10 years consulting experience focusing on strategy, large-scale
business transformation and organisational change programmes in the power and utilities sector. Ms Hogan has led
over 15 transformation projects in the Australian power and utility sector since entering professional services.These
include working with national energy clients and state owned government utilities across all key elements of the
value chain in retail, distribution and generation.
AUSTRALIA • CASSANDRA HOGAN • KPMG AUSTRALIA
DO YOU BELIEVE WILL
SHAPE ENERGY POLICY
AND MARKET ACTIVITY IN
THE MONTHS AND YEARS
AHEAD?
6. FWS U P P L E M E N T
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