What are centralised energy services?

Our centralised energy services include embedded electricity networks, serviced hot water and natural gas for residential high-rise buildings. As these services provide the energy needs for the whole community within the development, it means we can purchase energy in bulk, resulting in competitive rates for the community living in the development. 

Take embedded networks as an example. Quite simply, embedded networks allow the energy for the development to be aggregated and purchased in bulk from the wholesale electricity market through the ‘Master Meter’ (also known as ‘gate’ or ‘parent’ meters). The community then have access to the competitive electricity rates through their own meter which records individual electricity usage.

What are the benefits of centralised energy services?

Hardware is supplied and maintained

Electricity and hot water meters are installed to your schedule at no cost to the developer. Hardware is also maintained for the life of the agreement, and gas meters are no longer needed when our solution is adopted. 

Renewable energy solutions

If you’re looking to incorporate renewable energy solutions into your development, we have a range of options such as solar PV systems and battery storage, as well as electric vehicle charging stations that can help you meet your goals and future-proof your development.  

Competitive pricing

We’re able to offer ongoing competitive pricing terms for residents and the community energy supply agreements.  We can also offer discounted rates for common property energy usage, helping to offset strata levies.  

Management of site electricity and gas connection

Since we manage the site electricity and gas connection process, there’s reduced need for the developer to engage with the Local Network Service Providers (LNSP’s) for metering, which can help alleviate delays and roadblocks that sometimes arise. 

Ongoing support for the owners corporation and community

There’s a reason we’re Australia’s largest centralised energy service provider, with over 3,500 communities and 410,000 customers currently using one or more of our services.   

We’ve developed our services to provide benefits and solutions for the communities, developers and owners corporations in our sites. By choosing Origin as your provider, your developments future community will have access to dedicated support from our team.  

For the owner’s corporation this means access to dedicated account managers and an operational team that provide personalised support to each community. Acting as the single point of contact, our team help the community access our range of energy solutions and address any issues should they arise.  

For resident’s there are also benefits to being an Origin customer. Residents will have access to our team of expert Energy Specialists with specialised knowledge of our centralised energy services, 24/7 emergency assistance and they’ll receive customer protections including access to payment and hardship assistance programs. 

Our customers also get access to a range of great perks with Origin Rewards. From discounted movie tickets and fuel, through to discounts at some of Australia’s favourite retailers, it’s our way of saying thanks for being an Origin customer. Residents will also be able to access offers on Origin Internet, helping simplify the moving process.

Want to learn more about centralised energy services for your development?  

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Our team of experts is here to help your organisation find tailored solutions to meet its energy needs and support its decarbonisation journey.

1. Energy Market reports

The average NEM spot electricity price for the March 2024 quarter was $78/MWh:

• $30/MWh higher than Dec-23 quarter, reflecting higher demand from warmer weather and increased interconnector and baseload generator outages.
• $5/MWh lower than Mar-23 quarter, reflecting stronger baseload generator availability and higher renewable generation Source: AEMO Gas price Q3 (Mar-23) Q3 (Mar-24) Electricity price Q3 (Mar-22) Q3 (Mar-22).
• Average domestic spot gas price for Mar-24 quarter was $12/GJ, relatively flat on both Dec-23 quarter and Mar-23 quarter.

2. Product explainer

Virtual power plant

Origin’s Virtual Power Plant (VPP), also known as ‘Origin Loop’, uses smart meter data and AI to aggregate and orchestrate hundreds of thousands of distributed energy sources in homes and businesses to help relieve pressure on the grid in times of high demand.

The video below is an example of a business customer connected to the VPP with solar, battery, and other assets. It demonstrates how Origin Loop can assist business customers in lowering their costs and CO2 emissions.

Learn more how Origin Loop can benefit your business

3. Customer stories

Melbourne City Football Club

Melbourne City FC and Origin are proud to announce a significant milestone in their partnership with the installation of rooftop solar panels and battery storage at the newly opened City Football Academy Melbourne at Casey Fields. The newly installed 40 kW rooftop solar system is expected to generate approximately 50 MWh of electricity annually, while a 13.5 kW battery storage system helps to ensures the club’s operations can function efficiently . This initiative is a significant stride for Melbourne City FC towards reducing it’s carbon footprint at their state-of-the-art facility.

Commenting on the partnership, Melbourne City FC CEO, Brad Rowse, said:“As a club, we pride ourselves on innovation and making a positive impact on our community, and we are fortunate to have a partner in Origin that shares similar values.”

Origin, now in its third year as a partner of Melbourne City FC, has demonstrated its commitment to help the club reduce its carbon emissions by implementing renewable energy solutions to power its football and administration operations.

4. Origin news and updates

4.1 Origin has agreed to acquire the Yanco Delta Wind Farm in the Riverina

Origin has entered into an agreement with Virya Energy to acquire its Yanco Delta Wind Farm, one of the largest and most advanced wind and energy storage projects in New South Wales. Yanco Delta, consists of a 1.5 GW wind farm and an 800 MWh battery. This acquisition marks an important step in Origin’s ambition to lead the energy transition through cleaner energy and customer solutions.

4.2 Origin acquires renewables developer Walcha Energy

Origin has acquired renewable energy developer Walcha Energy, including the Ruby Hills Wind Farm and Salisbury Solar Farm, with up to 1,300 MW of planned capacity.

The acquisition of Walcha Energy is consistent with Origin’s ambition to lead the energy transition, specifically the strategic priority to accelerate renewables and storage in our portfolio.

5. Energy market updates and reports

5.1 The expanded Capacity Investment Scheme

The Capacity Investment Scheme (CIS) provides a national framework to encourage new investment in renewable capacity, such as wind and solar, as well as clean dispatchable capacity, such as battery storage.

It aims to help build a more reliable, affordable and low-emissions energy system for all Australians. An expansion of the CIS was announced in November 2023. The expanded CIS seeks to incentivise the national deployment of 32GW of renewable capacity and clean dispatchable capacity by 2030.

Competitive tenders for the expanded CIS will be held approximately every six months, which began May 2024. This represents a potential source of significant new generation supply into, and a meaningful intervention in, the National Electricity Market.

About the Capacity Investment Scheme – DCCEEW. (2023, December 15). Dcceew.gov.au.

5.2 Renewables continued to increase NEM market share

During the first quarter of 2024, the output from all generation sources, except gas-fired and hydro stations, increased to meet the growing demand in the National Electricity Market (NEM). Renewables led this surge, raising their overall share of total NEM supply to 39.0%, up from 37.4% in the same period the previous year. Grid-scale solar generation had the greatest increase in output, with an 18% lift in quarterly average output from the previous Q1 to a new record of 2,164 MW this quarter. This increase continued to be driven by new and recently commissioned capacity in New South Wales and Queensland.

Read more in the Aemo Quarterly Energy Dynamics – Q1 2024 here.

© 2024 Australian Energy Market Operator Limited. The material in this publication may be used in accordance with the copyright permissions on AEMO’s website.

The post Origin Zero Quarterly Market Report Q3 FY24 appeared first on The Origin Blog.

Origin Zero was established to help business customers on their decarbonisation journey through providing tailored energy solutions. Origin Zero can help customers reduce carbon emissions and energy costs and aims to make the transition towards net zero simpler for businesses. 

By working closely with our team, business solar customers can leverage our expert engineers, project managers, procurement specialists, quality and safety management experts, and maintenance and monitoring specialists.

We have a team of 50+ people dedicated to designing and delivering onsite renewable energy solutions, including experienced solar design and cutting-edge technologies.

Since 2015, we have installed over 100MW in solar projects for our business customers throughout Australia. Our depth of solar experience means we have the expertise to deliver any solar project, and the SunWiz award is a testament to this.

SunWiz is a solar market consultancy and analytics firm that has independently tracks solar installation data across Australia.

*Based installed solar power capacity in Australia, measured by SunWiz covering the period from 2001 (when government data became available) to the end of 2022.

The post #1 Solar Installer Award appeared first on The Origin Blog.

Our industry trends and energy market reports for the period 1 October – 31 December 2023.

This edition of the report includes:

Insights on the gas and electricity market

Providing an overview of the National Electricity Market (NEM) for the quarter. It shows that the decrease in NEM spot electricity prices in December 2023 was influenced by mild weather and increased solar generation, while the domestic spot gas price remained stable.

Product explainer

Discussing all things Solar Power Purchase Agreements: What are they, and how can they provide flexibility for businesses to acquire solar.

Customer stories

Showcasing the latest customer stories, including City of Melbourne appointing Origin Zero to install three battery energy storage systems and Dreamworld installing the largest solar system at an Australian theme park.

Origin news and updates

An overview of Origin news and industry updates that may be insightful for your business, including:

1. Origin Zero customers who purchase a solar system between 30 kW-100 kW can now access the UPowr digital platform, which will provide streamlined management of your system.
2. Termination of the Scheme Implementation Deed by Origin.

Energy market updates and reports

1. Oil Market Report for January 2024.
2. Details of the Australian Government’s intention to introduce climate reporting obligations for large Australian businesses.

Our insights

Electricity and gas markets

Average NEM spot electricity price for Dec-23 quarter was $48/MWh: − $24/MWh lower than Sep-23 quarter, reflecting lower demand due to milder seasonal temperatures and higher solar generation − $43/MWh lower than Dec-22 quarter, driven by lower coal fuel costs following the introduction of coal price cap and increased renewable generation.

Average domestic spot gas price for Dec-23 quarter was $11/GJ, relatively flat on Sep-23 quarter and $7/GJ lower than Dec-22 quarter when prices were volatile post the unprecedented market conditions in Jun-22 quarter.

Product explainer

What is a solar power purchase agreement (PPA)?

A solar power purchase agreement enables businesses to install solar systems with Origin Zero without any upfront costs* and use the energy it generates at a predetermined, agreed-upon rate as part of a long-term financial arrangement. Origin Zero owns, operates, and maintains the system and sells back the electricity at an agreed rate (c/kWh).

Facilitating a solar PPA with Origin Zero can help fast-track your journey to reducing carbon emissions, allowing businesses to enjoy the benefits of solar energy without the upfront investment*. Discover how your business can harness the power of solar with solar PPA

*Some site based non-system costs may be incurred and will be quoted at the time of sale.

Customer stories

City of Melbourne

Origin is working with the City of Melbourne to deliver three battery energy storage systems, as part of its ambitious Power Melbourne project.

Power Melbourne is an exciting program. This first stage will see our team install three batteries with a combined capacity of 450 kW / 1MWh – equivalent to powering more than 70 homes each day.

It’s a great example of the tailored energy solutions that we can offer our large customers to help meet their unique needs. Origin Zero was selected to install and operate the batteries following a rigorous tender process run by the City of Melbourne. All three batteries are expected to be installed by mid-2024.

The batteries will charge during the day when there is a higher proportion of renewable energy in the grid. Stored energy will then be released back into the grid when it’s needed most – helping to support the transition to renewable energy.

Dreamworld

Dreamworld is now home to the largest solar system at an Australian theme park, after we completed the installation of 2,000 panels and 13 inverters.

Expected to cover an estimated 24% of Dreamworld’s annual energy usage and reduce the park’s carbon emissions by 21%, the 788-kW solar power system will power some of Dreamworld’s biggest attractions like The Giant Drop, Tower of Terror, and Steel Taipan, while putting energy back into the local grid. Dwayne Clark, General Manager of Commercial and Facilities at Ardent Leisure, said: “The longer-term reduction in energy costs far outweighed a costly upfront installation of the panels. Ardent Leisure has been doing its part to reduce its environmental footprint, and this installation marks a significant step to reduce carbon emissions at the theme park.”

Origin news and updates

Origin Zero solar customers to benefit from access to digital platform UPowr

Origin has over 15 years’ experience in solar sales and installations for homes and business across Australia, having installed more solar power capacity in Australia than any other solar retailer since the beginning of the local solar industry, as measured by SunWiz. To help support our capability to service the growing market for business solar systems, we have recently switched to an innovative new digital platform to manage commercial solar sales, design and engineering, installation and support for system sizes between 30 kW-100 kW.

The new platform – through UPowr – manages advanced system designs, shadings and savings forecasts, and in-field installation services. It will help us streamline the customer experience, support installers, and enable us to service more customers with tailored solar solutions. We’re currently live with UPowr in QLD, NSW, VIC, and SA, and will have WA coming online early 2024.

This collaboration is just another way we’re accelerating businesses towards net zero.

Termination of Scheme Implementation Deed

Origin Energy Limited (Origin) refers to its announcement on 4 December 2023 advising the Scheme Meeting results for the proposed acquisition of Origin involving a Brookfield-led consortium of investors (Brookfield) and EIG, by way of a Scheme of Arrangement (Scheme). 

Read more here.

Energy market updates and reports 

Electricity 2024 Analysis and forecast to 2026

The International Energy Agency’s sector report* offers a deep and comprehensive analysis of recent policies and market developments, and provides forecasts through 2026 for electricity demand, supply and CO2 emissions. This report, which has been published regularly since 2020, provides insight into the evolving generation mix. In addition, this year’s report features in-depth analysis on the drivers of recent declines in electricity demand in Europe; the data centre sector’s impact on electricity consumption; and recent developments in the global nuclear power sector.

Mandatory climate reporting

Earlier this year, the Australian Government confirmed its intention to introduce climate reporting obligations for large Australian businesses. Starting 1 July 2024, climate disclosures using the International Sustainability Standards Board (ISSB) climate standard will be mandatory in Annual reports.

Even those not mandated may disclose voluntarily to attract investors concerned about climate risk. Directors must ensure robust reporting systems, evaluate climate governance, competency, and necessary data.

Read more about these reporting mandates and how your business might be affected.

*IEA (2024), Electricity 2024, IEA, Paris https://www.iea.org/reports/electricity-2024, Licence: CC BY 4.0

The post Origin Zero Quarterly Market Report Q2 FY24 appeared first on The Origin Blog.

Our insights

Electricity and Gas Markets

Average NEM spot electricity price for Sep-23 quarter was $72/MWh:

• $46/MWh lower than Jun-23 quarter, reflecting lower demand due to milder seasonal temperatures, higher solar generation and increased baseload availability.
• $147/MWh lower than Sep-22 quarter which experienced periods of high prices due to baseload outages and high international coal and gas prices.

Average domestic spot gas price for Sep-23 quarter was $10/GJ:

• $4/GJ lower than Jun-23 quarter due to lower seasonal residential demand
• $16/GJ lower than Sep-22 quarter when prices were volatile post the unprecedented market conditions in Jun-22 quarter.

Fuel your knowledge

Flexible EV subscription for businesses

The Origin 360 EV team has launched the EV Flex Plan, an all-inclusive and cost-effective electric vehicle business subscription plan. The EV Flex Plan provides flexible terms, allowing businesses to choose between a monthly subscription or fixed-term options with lower repayments, making it easier to budget and control vehicle costs.

The all-inclusive plan includes:

• Registration
• Comprehensive insurance
• Routine servicing and maintenance
• Mobile EV charger cable
• Up to 25,000km mileage per annum
• Tyre replacement for wear and tear
• 24/7 roadside assistance
• Accident management
• Toll management

Customer stories

Inghams

We’re working with Inghams to trial a Tesla Model 3 in their fleet and develop site-specific renewable energy solutions to help them meet their 2030 targets. 

In the early stages of this collaboration, the Origin Zero team has already provided Inghams with the keys to their first electric vehicle, with hopes it will be the first of many to be added to its fleet. 

The car has been assigned to a member of Inghams’ sales team who travels more than 50,000 kilometres a year to visit customers throughout New South Wales, representing a start toward reducing their business carbon emissions.

Baptist Care

Baptist Care is a leading not-for-profit aged care and community service provider, committed to improving the lives of people and communities in need. With a focus on energy efficiency, they are eager to reduce their energy costs while simultaneously making progress towards their net zero goals.

Real-time energy insights for smarter energy management

This has all been achieved through a tailored solution developed for Baptist Care that included the installation of six energy meters. This equipment is connected to various circuits across the Yarra Rossa site, measuring 12 three-phase circuits, including assets such as their pool, kitchen and solar.

By working with Origin Zero and investing in energy management solutions, Baptist Care is helping empower their residents with greater insights about their energy use and making progress towards the organisations’ 2050 net zero goals.

Origin news

Connecting with customers and industry partners

Throughout the last quarter, the Origin Zero team participated in key industry events, including Sydney’s Industrial Net Zero Conference and Melbourne’s All Energy where we met with customers and industry partners and presented insights on the importance of energy providers and businesses collaborating to reduce energy consumption and meet environmental targets and responsibilities. 

The event provided an opportunity for valuable conversations with customers and industry professionals about the latest innovations in renewable technologies, including lower-carbon products that Origin can provide, and the potential for partnership and collaboration.

Consortium significantly increases cash consideration

Consortium significantly increases cash consideration to best and final proposal of $9.53 per share. Revised offer above Independent Expert’s valuation.

Origin Energy Limited (Origin) advises that the Brookfield-led consortium of investors and EIG has increased the cash consideration offered to all Origin shareholders under the Scheme of Arrangement (the Scheme) by a total of 69 cents per share¹, or approximately $1,200 million.

Origin receives $45 million to progress Hunter Valley Hydrogen Hub

Origin has been awarded $45 million in funding from the NSW Government’s hydrogen hubs initiative to progress the proposed Hunter Valley Hydrogen Hub on Kooragang Island.  

Full year Results 2023

Origin Energy Limited (Origin) announced its results for the Full-year ended 30 June 2023.

Energy market reports

Aemo Engineering Roadmap – FY2024 Priority Actions Report

The Engineering Roadmap – FY2024 Priority Actions report published in July 2023:

• Outlines the activities AEMO plans to undertake in the 2023–24 financial year (FY2024) to help prepare the National Electricity Market (NEM) for operation at times of 100 percent instantaneous renewables.
• Summarises the extensive progress made in FY2023 by AEMO and across industry to increase preparedness for 100% instantaneous renewables.

Renewable Projects Quarterly Report Q1 2023

The Renewable Projects Quarterly Report details recent investment in renewable generation and storage projects in Australia and shows trends since 2017.

The post Origin Zero Quarterly Market Report Q1 FY24 appeared first on The Origin Blog.

Directions

Under the National Electricity Rules (NER), the Australian Energy Market Operator (AEMO) can take action to maintain or restore the power system to a reliable operating state. These are called “market events”. When an event like this occurs, AEMO can request generators to increase supply where possible, as well as requesting large commercial users to significantly reduce load or shut down.

In return, AEMO financially compensates generators who increased supply, or those users who reduced their consumption. The cost of this compensation is then passed back to retailers, such as Origin, who then pass the cost to those customers who consumed electricity in that region, at the time of the event. AEMO charges differ depending on the region. Customers are charged based on the region their supply is connected to.

All events are listed on the AEMO website: Market event reports.

What is the difference between the RERT and Directions?

The Reliability and Reserve Emergency Trader (RERT) is a two-way contract between AEMO and commercial energy users. During times when the market has not provided enough energy to meet demand, such as extreme heat events, AEMO may request generators to increase supply as well as ask large commercial users to significantly reduce load or shut down. This program is optional for large commercial users who will be compensated for their participation (based on eligibility). Non-participating customers will incur a charge, passed through by
AEMO via the energy retailer, as a cost of operating this mechanism. (Read more about RERT here.)

Directions, on the other hand, are typically given by AEMO to scheduled generators to make them available for generation even if they are not commercially available at that time. These generators will be compensated by AEMO for their compliance. The cost of operation is then passed through to customers by AEMO via the energy retailer.

How is the Directions charge calculated?

Directions charges relating to the June 2022 market suspension

Directions charges are calculated after claims for compensation are submitted by market participants. In most instances, the claims are submitted shortly after the event. Claims for the June 2022 event were reviewed by an independent auditor and have been on-going after an initial charge was announced in July 2022. As a result, AEMO announced an amended charge on 6 January 2023.

Origin can only charge directions charges after the charges are announced by AEMO. In some instances, the charges may be adjusted by AEMO after the first charge is applied, which means some customers may be charged more than once.

The post What is the Directions charge? appeared first on The Origin Blog.

The Reliability and Emergency Reserve Trader (RERT)

 In Australia, if there is a threat to the reliability of our power system, the Australian Energy Market Operator (AEMO) can step in to maintain or restore a stable operating state. 

One-way AEMO does this is through the Reliability and Reserve Emergency Trader (RERT), a two-way contract it holds with large commercial energy users. Under RERT contracts, AEMO may request large commercial users who are contracted in the RERT program, to significantly reduce demand or shut down, if the market does not have enough capacity to meet forecast demand, such as during extreme weather events. Large energy users do this in exchange for payment.

Participants in the RERT are deemed eligible based on a range of criteria, including having the flexibility to change their operations in order to reduce energy consumption during times of peak-demand. Most large commercial energy users opt to participate in the RERT via an intermediary, such as Origin.

Recent RERT activation

Early in 2023, Australia’s National Energy Market (NEM) was at risk of supply shortfalls, due to high temperatures and the impact this has on energy demand, coupled with several large generators offline for maintenance. These events placed significant pressure on the grid and posed risks to reliability. 

On 3 February 2023, AEMO activated 21 MWs of electricity reserves in Queensland under the RERT.

Helping restore balance in power supply and demand

During this RERT event, Origin successfully engaged participants, acting on instructions from AEMO to dispatch reserve capacity. Through our virtual power plant, our team liaised with our Queensland based RERT customers informing them of market notices, changes to weather and grid conditions, and passing on regular updates on the likelihood of a RERT event and its potential duration.  

RERT participants can support the energy market to help avoid prolonged high prices and outages. If they participate in a RERT event, they receive a payment from AEMO and a reduction in direction charges proportionate to their participation. This compensation is provided by AEMO because their role, as RERT participants, is essential in allowing the RERT mechanism to work and ensuring the on-going security and stability of Australia’s power system. 

Customers power down and earn RERT payments

During the recent RERT event on 3 February, Origin Zero customers delivered all of the reserve electricity activated by AEMO and were compensated accordingly for powering down for 2 hours (the complete duration of the RERT event). 

The RERT is only used for emergencies

While we’re experiencing more extreme adverse events that affect our electricity system, it’s important to note the RERT is only used in emergency situations and when AEMO deems it necessary.  RERT participants are given notice in line with their contracted operational parameters, and as the program is an “opt-in” mechanism, participants have the freedom to participate after assessing their operational constraints. 

There are differing mechanisms and other ways large businesses can be rewarded for reducing demand and helping to increase system reliability, besides the RERT. 

Have a chat to your Origin Zero team today to discuss the different options available for your business.

The post RERT Activation Summary Feb 2023 appeared first on The Origin Blog.

What are Frequency Control Ancillary Services?

The Australian electricity grid requires both supply (generation) and demand (load) to be matched to operate safely. 

The grid must operate at a frequency of 50Hz, or “cycles” per second, to avoid grid instability or, in extreme instances, blackouts. There is a “Normal Operating Frequency Band”, which operates between 49.85Hz and 50.15Hz. 

To help maintain grid frequency, Frequency Control Ancillary Services (or FCAS for short) are used to manage reductions or injections of energy into the grid, when required. FCAS services are generally provided by gas or coal fired power stations and also batteries and are directed and procured by the Australian Energy Market Operator (AEMO) to ensure grid stability.

As the Australian grid continues to evolve, FCAS will remain a critical part of its ability to operate securely and reliably.

FCAS Markets

The FCAS market is made up of two distinct types of services: Regulation and Contingency.

Regulation frequency services act to correct minor deviations in load or generation. Each region has ‘raise’ and ‘lower’ regulation services, which are managed by AEMO directly with large generators, such as gas plants.  

Contingency services can be supplied and enabled on site with participating large businesses at the equipment level (behind the meter), to help ensure frequency is returned to the normal operating band following an event. An ‘event’ occurs when the grid is outside of the Normal Operating Frequency Band .

The FCAS Contingency service is broken down into two components either a “raise service” or “lower service”.  System frequency can be raised, by activities such as discharging a battery or reducing load   .  

System frequency can be lowered by businesses participating in FCAS markets, increasing their load use, charging batteries to increase the load taken from the grid, or stopping [electricity produced by] solar being sent to the grid.

AEMO directs and procures these kinds of activities using three different time-frame response levels: Fast (a response within 6 seconds), Slow (a response within 60 seconds) and Delayed (a response within 5 minutes).

Why are we talking about FCAS?

Many large businesses have energy assets which can be used to provide stability to the energy system whilst deriving revenue [for that business] through markets such as FCAS.

Assets such as solar or diesel generators that create power, or flexible loads, such as refrigeration or heating and cooling systems (HVAC), which can be turned on or off, can earn fees from AEMO by helping provide Contingency services. Asset owners can place these assets on stand-by to make them available for use within FCAS markets. 

What is Origin Zero’s role?

Through Origin’s Virtual Power Plant (VPP) we can provide a way for businesses to share in the upside of supporting the grid in times of volatility whilst unlocking commercial value.   By grouping assets, we can provide market services to help large businesses provide FCAS and access revenue streams from those services.

The post What is FCAS? appeared first on The Origin Blog.

Why is the energy transition happening?

Australia is undergoing a transition to a ‘lower emissions future’. This involves a multi-decade, large-scale transformation that will help change the way society sources, produces, supplies, distributes and uses energy. And it will help deliver a reduction in global emissions. Driven by the necessity to limit global warming from climate change, this transition involves everybody, from industry, government, down to individual households. 

Australia has a goal to reach net zero emissions by 2050, in line with the goals of the Paris Agreement.

What will happen to the energy grid?

The largest aspect of the energy transition is the decarbonisation of the power that gets generated and provided to our National Electricity Grid. 

Over time, the fuel sources of Australia’s power will shift away from traditional, carbon-intensive ones, such as coal, towards renewable energy sources such as solar and wind. This shift is happening right now, through various investments and programs. And critical to this, is getting the balance right to also ensure grid stability, giving consumers reliable and affordable power. 

While solar, wind and other renewable technologies are becoming more efficient and industrial in scale, there’s still a reliance on traditional fuels to provide ‘baseload’ power, to ensure the grid operates effectively around the clock, for instance in times of peak demand and when supply of renewable power is typically lower. This reliance will fall over time, as renewable power grows and technologies for energy storage improve. 

What can business energy users do?

As some of the biggest users of energy, Australian businesses have an opportunity to help shift the needle towards net zero emissions. 

Many businesses are already actively working to reduce the carbon emissions associated with their day-to-day operations. Those partnering with the Origin Zero team are electrifying vehicle fleets, installing on-site solar and batteries to reduce grid demand, and are reducing other carbon intensive practices from their operations through their energy choices. 

Businesses are also using carbon offsetting to balance out their carbon emissions, opting in to plans such as “Origin Go Zero”, which is certified by Climate Active, a government-backed carbon neutral certification program.

What role does government play?

The Australian Government has set the nation’s emissions reductions targets and are implementing ways to ensure the commitments are met. 

At both federal and state government levels, legislation is being introduced to ensure better, more efficient energy usage and less carbon emissions from industry. 

For example, the federal government has introduced the ‘Safeguard mechanism’ legislation which compels Australia’s largest carbon emitting businesses to meet pre-defined and continually lowering annual emissions targets, with penalties applying to those who fail to do so. 

At a state level, for example, the NSW Government is introducing the Peak Demand Reduction scheme, which incentivises households and businesses to reduce energy consumption during hours of peak demand through the use of energy-efficient technologies and appliances. For instance, powered cooling devices during summer. Each state government has differing programs in place which effect business and household energy users. 

The Australian Government has also established carbon trading markets where businesses which earn certificates (ACCUs) for implementing sustainability projects, and can trade those certificates with other businesses to offset their carbon emissions. The government itself is an active buyer of ACCUs by way of ‘abatement contracts’, to provide financial incentives and create markets for private investment in renewable projects. 

What role does technology play?

Technology plays an enormous role in Australia’s energy transition.

Energy storage is one technology that, as recently as a decade ago, wasn’t possible at large scale. However, large scale battery technology is advancing as well as becoming more affordable for businesses looking to store energy on-site for use either in an emergency or when electricity demand and prices are high. Many businesses are now combining on-site solar with battery solutions, generating energy when the sun is shining and storing it for future use.

Electrification is another important aspect of the transition. If electricity, generated from renewable sources, can replace traditional fuels as a power source, we can further decarbonise significantly. Electric vehicles are a prominent example, the growth of which will transform our entire transport system. This technology is likely to extend beyond just road vehicles and, in time, offer opportunities to other forms of transport, on land and sea, too.

Digitisation and the smarter use of technology are also helping make Australia more energy efficient. Devices such as Power Factor Correction units can measure business energy supply and demand in real time, more accurately matching intake with required need and eliminating wastage.

Origin’s role in the energy transition

As a leading Australian energy company with operations spanning retail, power generation and natural gas production, as well as a major employer with a footprint in many communities across the country, we recognise we have an important role to play in the transition to a low emissions future. 

One of the steps which Origin has taken is the recent decision to bring forward the closure of coal generation at the Eraring Power Station. Closing the country’s largest coal power plant is a demonstration of Origin’s commitment towards leading the move toward a net zero Australia. 

We provide energy to millions of Australian households and businesses, and these customers are at the heart of everything we do. The needs and expectations of our customers are changing, and our products and services will need to evolve to address those future needs. We will achieve this through innovation, increasing lower carbon energy options and increasing the renewable energy assets in our generation portfolio.

For our large business customers, the Origin Zero team can help businesses on their journey towards net zero through partnership, leadership, and end-to-end tailored solutions. We have a range of products and services to help your business lower carbon emissions.

The post The energy transition appeared first on The Origin Blog.