Sector snapshot
- The energy sector is a major contributor to the Australian economy. The market capitalisation of energy companies in the ASX200 is about $74 billion.
- Australia has extensive energy resources from both renewable and non-renewable sources.
- Australia is a large exporter of energy.
- Australia’s National Electricity Market constitutes the world’s largest interconnected electricity grid, and provides for a centralised wholesale electricity market for the east coast states.
- Uncertainty remains as to Australia’s future climate change policies and how they may influence the shape of the Australian energy sector in the long term.
Trends
- Technological advances, including advanced metering technologies, battery storage and virtual power plants, are transforming the Australian electricity industry.
- The National Electricity Market is undergoing a number of reviews and reforms to seek to address challenges relating to system security and other related issues.
- The roll-out of large-scale solar generation continues to accelerate, and the role of renewables is set to continue to expand.
- The domestic gas market is being affected by tight supply conditions, and a number of gas market regulatory reforms have been slated.
Hive Legal’s work in the sector
- Advising QIC on the foundation contract for its acquisition of the gas storage facility in Western Victoria, and acting as ‘virtual general counsel’ for the new operator, Lochard Energy.
- Drafting and negotiating offtake agreements for ten separate proposed large-scale solar projects.
- Advising a major electricity market participant on numerous National Electricity Market disputes
- Advising a major metering business and electricity retailers on smart meter procurement and electricity metering regulatory changes
- Providing Alcoa with legal support on electricity regulatory matters for its Portland smelter.
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