Reading time: 2 mins

Australian Renewable Energy Market Update – April 2024

2 May 2024

AEMO and the AER release their Q1 2024 reports on the electricity and gas markets

The Australian Energy Market Operator (AEMO) and Australian Energy Regulator (AER) released their Q1 2024 electricity and gas market reports. These quarterly reports highlight the trends and statistics of the previous quarter. Compared to Q4 2023, Q1 2024 saw higher temperatures and elevated demand across the National Electricity Market (NEM), and a subsequent increase in wholesale prices. This was most pronounced in Victoria, where a severe storm caused network outages and extreme pricing on a single day in February, and Queensland, where heat and humidity drove record maximum electricity demand over several days. Outside of these events however, prices were 8% lower than those seen in Q1 2023, attributed to increasing renewable energy output and lower price coal capacity. Of note, grid scale solar output increased by 18% and output from grid scale batteries was up 134% year on year, highlighting the rapid deployment of storage in the NEM.

Federal Government announces first tender round for renewable generation under the expanded Capacity Investment Scheme

In late April the Federal Government announced the first tender for renewable energy under the expanded Capacity Investment Scheme (CIS), making a joint announcement with the NSW government for 6GW of new variable renewable energy projects in the NEM. Of this 6GW, at least 2.2GW will be allocated to NSW, replacing the planned Q4 2024 Long Term Energy Service Agreements tender round under the NSW Electricity Infrastructure Roadmap. At least 300MW of the capacity has been allocated to South Australia, with the remaining allocation to be announced when the tender kicks off in late May. This followed the announcement of the first CIS tender for the Western Australian Wholesale Energy Market (which operates separately to the NEM), for 500MW / 2000MWh of clean dispatchable capacity. These are promising signs, as the federal government moves quickly to establish the planned half yearly tender rounds. The success of this will be crucial to achieving the goal of 82% renewables by 2030.

Australia to significantly increase capability in green manufacturing and technology under new plan

In early April the Federal Government announced the Future Made in Australia Act. The plan, which has been compared to the USA’s Inflation Reduction Act, is focused on developing Australian capability in green manufacturing and technologies, including hydrogen, green metals, solar power and emerging renewable technologies. The program aims to move Australia up the green supply chain, taking advantage of its abundant renewable and physical resources and ensuring economic benefits of the transition are captured on shore. Greater detail on the plan is expected with the release of the Federal budget in May, and is considered likely to form a major part in the Government’s push for a second term.

Quarterly Video Update – Energy Markets Outlook

Hear our Director of Energy Markets and Analytics, Brent Collyer, shed some light on the outlook for Australia’s energy market and explore how integrated renewable energy assets will play a pivotal role in bridging the gap left by decommissioned coal plants. Our Head of Wholesale, Campbell Ross, also provides an update on our OASIS product.

Did you know?

A recent study out of the Australian National University found that the area required for large scale wind and solar projects to decarbonise energy use in Australia would be around 1200km2.