Highlights from the Australian market
- Snowy 2.0’s price tag has blown out to up to $25 billion, another increase from the original $2 billion when it was announced in 2017. With tunnelling only 65% complete, the 2,200 MW pumped hydro project isn’t expected to deliver first power until early 2029.
- Alinta Energy has abandoned its $1.8 billion, 900 MW Oven Mountain pumped hydro scheme in northern NSW, citing economic and timing challenges including a critical transmission line. It’s the second largest NSW project scrapped this month, after Origin’s Skye Ridge Wind Farm, as falling battery costs undercut pumped hydro.
- WEM news: AEMO has set the 2028-29 Reserve Capacity Prices at $459,192/MW/year for Peak capacity and $244,250/MW/year for Flexible capacity, alongside the assignment of capacity credits for the 2026 Reserve Capacity Cycle.
- NextDC expects its future earnings to fall by about a third after West Footscray residents stalled Jemena’s rollout of 15-metre, 66 kV power poles to its Melbourne M3 data centre by parking their cars in the street to block the work trucks. Morningstar expects community pushback like this to drive new data centres further from built-up areas.
- A new alliance of Queensland community groups, backed by Nationals leader David Littleproud, is calling for tougher rules on wind and solar developments, including minimum 3 km setbacks from homes and up-front decommissioning bonds. It follows growing frustration among neighbours of projects, such as Stanwell’s Wambo Wind Farm, and adds to planning risk for the Queensland renewables pipeline.
- NSW spot prices hit $23,107/MWh on 12 October when a spring heatwave coincided with coal outages. Amber Electric’s roughly 30,000 customers earned about $2 million in two hours by exporting from home batteries during the spike, which raises questions about AEMO’s lack of visibility over behind-the-meter storage.
- Paywalled: LNG importers across Asia are pushing back on the federal government’s plan to make exporters reserve gas for the domestic market, putting Australia at odds with the region’s major energy buyers. The outcome will shape east coast gas supply and prices for gas-fired generation.
News from Japan
- Paywalled: METI is considering raising the fee for grid connection applications, which hasn’t changed since 2012 (¥220,000, about AUD 2,000), to stop BESS developers from holding grid capacity without firm plans. Applications have jumped from 1,599 in FY2023 to nearly 25,000 in FY2025, and earlier measures like a higher deposit and caps on applications per developer haven’t slowed them.
Podcast of the week
BloombergNEF’s Switched On looks at why gas turbine makers are cashing in on the global power rush. With orders surging, delivery slots scarce and data centres driving demand, they ask how long the boom can last and whether manufacturers can expand without repeating past overcapacity.