- 9 November 2018 14:26
Capgemini’s World Energy Markets Observatory Report 2018
• Australia is on track to meet its 2020 and 2030 emissions targets despite the forecasted increase in emissions in 2030 by 3.5% above 2020 • Australian State and territories are playing crucial roles in driving the Australian energy transition • Australia saw a boom in large-scale renewable projects up by 150% on 2016, driven by declining prices of solar and wind • Government reviews carried out and policies introduced to manage increase in consumer prices. Bipartisan agreement difficult to obtain
Capgemini has published the twentieth edition of its annual study, the World Energy Markets Observatory (WEMO) report, created in partnership with De Pardieu Brocas Maffei and Vaasa ETT. The study reveals China’s role as a leading worldwide player in technology, equipment and Utilities ownership, and highlights that global economic growth has increased energy demand and leaves long-term climate change targets in question. e. In turn, Utilities are showing improved financial health, and the overall landscape is changing. They are adapting their business models with new technologies such as IoT, AI, chatbots, and blockchain as competition from new players emerges. All segments of the value chain are impacted by digital transformation, from client relationships and operational processes, through to grids and interactive services. The key Australian findings of the 2018 edition of the World Energy Markets Observatory report are: 1. Australia’s emissions have increased in the past three years and the momentum will continue until 2030. Regardless of this, Australia is on track to meet its 2020 and 2030 targets Emissions in 2030 are projected to grow by 3.5% above 2020 levels mostly driven by transport and agriculture sectors while other sectors are projected to stabilise or grow slowly in the post 2020 period. Despite the continuous rise in emissions, Australia is on track to achieve its 2030 emissions reduction target of 5% below 2000 levels. 2. 2017 was overall marked as a year of positive developments in the renewable energy front, despite the marginal decline of 2% in renewables share, owing to low hydro output Generation in renewable energy were largely driven by wind and solar. For the first time, the contribution of wind in the nation’s electricity generation was at par with hydro, both accounting for about a 6% share.Australia is witnessing an unprecedented construction boom in large-scale renewable energy projects.According to Bloomberg New Energy Finance data, large scale solar and wind projects attracted investment worth A$11.7 billion in Australia, which is an increase of 150% from 2016. The most crucial milestone in energy storage was achieved in 2017 with the construction and commissioning of the world’s biggest lithium-ion battery in South Australia, installed by Tesla and owned by Neoen.With household battery activity gaining momentum, driven by VPP and other state government initiatives like the ‘Battery of the Nation’ initiative in Tasmania, the adoption of battery storage technology will gain further traction in the coming years. 3. In the backdrop of an unsustainable electricity pricing situation, an ACCC review identified four root causes of the 56% residential customer price increase over the last 10 years. An overly strong focus on reliability standards led to increased investment in the network, reduction in lowest cost supply due to the shutdown of coal-fired power stations increased wholesale prices, generous solar feed-in tariffs required funding through increased network and wholesale prices, and excessively high retail prices charged for standing offers, coupled with confusing price structures, leaving limited options for consumers to switch.
Policies to tackle these issues are being developed and we believe will play an integral role in both Federal and State elections over 2018 and 2019. 4. There has been an increased investment on the management of Distributed Energy resources aiming to ensure reliability as the energy market transforms Federal funding has been allocated to pilot projects focused on increasing network hosting capacity through advanced monitoring and control schemes. These are required to manage power flow, voltage fluctuations and other system requirements in real time, ensuring secure operations of the grid. The end game is to build an integrated electricity system that operates securely and reliably with 100% of demand met from behind-the-meter assets. It will function in combination with rooftop solar, batteries and other demand management options within homes and businesses. 5. Advancements in emerging technologies such as blockchain, IoT, big data and cloud are resulting in innovative services such as low-cost and low energy consumption based IoT networks, blockchain powered trading platforms, smart lighting and smart environment services Fast paced technological changes are rapidly reshaping Australia’s energy market, transforming it from a centralised system dominated by a few players to a more decentralised, heterogeneous environment. Big data, analytics and IoT are being leveraged by city councils and businesses to improve energy efficiency, facilitate smart city development and ensure consumer retention Jan Lindhaus, Vice President, Head of Energy and Utilities at Capgemini Australia comments:”All segments of the value chain are impacted by digital transformation, from client relationships and operational processes, through to grids and interactive services, with a huge potential to decrease costs. Utility incumbents need to accelerate their transformations and step up their focus on new service-based business models as competition from different domains including new entrants, is increasing.”