Renewable records fall over the first month of spring
Renewable generation records have fallen across the National Electricity Market (NEM) over the first month of spring, with favourable weather driving high levels of wind and solar generation and tempering demand. New capacity added over the previous year has seen new highs reached for renewable penetration.
On the last Sunday of the month, South Australia saw just over 150% of its local demand met by renewables – a mix of wind, utility and rooftop solar. As renewables become a larger source of generation, it’s hoped that additional daytime demand (from battery storage and hydrogen) plus increased export capacity, will minimise capacity wasted through curtailment. For South Australia for example, the commissioning of Project Energy Connect and connection to New South Wales in 2027, will allow the state to export considerably more power, supporting other regions of the NEM.
During the month, Queensland large scale solar hit a record 34% of total generation, at the same time coal output hit a record low in terms of absolute generation – a meaningful milestone in the NEM’s most coal dominant state. Victoria and New South Wales reached a new record output of rooftop solar during the month, with New South Wales seeing over 4.8GW for the first time – which is more than, for example, the registered brown coal capacity in neighbouring Victoria.
Clean Energy Regulator releases the Q2 2024 Quarterly Carbon Market Report
The quarterly report into Australia’s carbon markets highlights the renewed and increasing pace of the renewable transition after a particularly slow 2023. The Clean Energy Regulator (the regulator charged with approving new power station capacity for participation in the Renewable Energy Target) increased the expected approvals for large scale wind and solar capacity from 3GW to 4GW for 2024. Total new renewable capacity is now expected to exceed 7GW in 2024, with an additional 3.1GW of small-scale capacity expected.
The report also highlighted the 1.8GW of capacity reaching final investment decision in Q2 2024, the highest quarterly total since Q4 2022, with the four-quarter rolling average continuing to increase since the lows seen in 2023.
Also noted was the Australian Government’s fast tracking of the Guarantee of Origin Scheme. Confirming that Renewable Electricity Guarantee of Origin (REGO) certificates, will be available for renewable energy to be certified from 2025. This will also include stored renewable energy dispatched from batteries. The certificates will enable more granular tracking of renewable attributes (such as time of day) than currently possible under the Renewable Energy Target’s Large-Scale Generation certificates.
Podcast with Livewire Markets: The Rules of Investing
Our Co-Managing Director of Renewables Australia, Darren Brown, recently sat down with Livewire’s Chris Conway for an installment of the Rules of Investing podcast. Darren shares his unique perspectives gained from his experience in both fossil fuels and renewables, providing valuable insights into the energy sector’s evolution, the transformative changes taking place, and the potential for long-term growth and opportunities for investors in the renewable energy market in Australia.
