Energy From Renewable Sources

With all of the attention on lower energy costs and the ever-increasing desire to do what we can to save the planet, it is no surprise that our energy suppliers are working hard to encourage us to reduce our dependence on energy sourced from fossil fuels. As most commercial energy quotes are provided on a customized basis, there is no one-size-fits-all solution to the age-old question, “How much energy should I be using?” However, a good energy supplier will first determine which rates you qualify for according to the following metrics. Energy conservation and output are obviously of prime importance and these are typically reflected in the initial energy contracts. In addition to calculating usage and output rates, these contracts also look into other important components of efficiency, such as energy recovery and energy efficiency objectives, as well as timelines for achieving each.


The market operator

or wholesale electricity supplier that you contract with is responsible for determining which projects are economically viable and reasonable, as well as meeting expected energy output levels and carbon emissions. In general, wholesale electricity suppliers work with project managers to determine which projects will be the most cost-effective and efficient. Project managers typically prepare a list of criteria to evaluate potential projects, including energy output and expected future usage, efficiency levels, environmental and reliability considerations, and availability of existing resources. Depending upon the type of project, the market operator will then provide you with an estimate, allowing you to budget your purchase.


Once your project is chosen,

you can expect your supplier to deliver it to your property using one of the approved energy supply methods. For example, under a standard energy contract, you are generally required to use one of the energy providers that are licensed by the Australian Energy Market Operator (ANAO). These companies offer a comprehensive selection of generators, which include wind, solar, gas, hydro, and other sources of renewable electricity. In addition, the wholesale electricity market has numerous off-grid applications, such as remote community power, mobile storage, and vehicle-mounted electric ignition. As an increasing number of rural and remote people have been choosing these alternative sources of energy for reasons of environmental responsibility and economic viability, the demand for off-grid application electricity solutions has also increased.


If your project is approved,

your supplier will then enter into a contract with an independent system operator or electric power exchange. An independent system operator is a company that works in partnership with your supplier to create a “closed-loop energy delivery system.” Under this arrangement, the independent system operator not only delivers the electricity but also collects and stores excess energy that it sells to the end-user. The end-user is typically a small-scale electric power user who is capable of producing electricity. In return for the service, the end-user pays a fee to the independent system operator.



the Electric Capacity Market (also known as the capacity market) determines the demand for generating units. The capacity market rates are established by taking into consideration the number of hours the average residential consumer wishes to generate their electricity. Once established, the market rates, or capacity mechanism, ensure that there is a continual increase in the amount of electricity that the market is capable of providing. In essence, capacity markets are responsible for making certain that the Electric Power Exchange remains viable and continues to be successful.


Energy from renewable resources

has been a highly controversial issue over the years because some sources of energy are expensive to develop and require significant infrastructures to build. One way that we can address this problem, and one that has the potential to solve many of the problems that are currently being experienced, is through the development and implementation of a transmission policy. Simply put, when transmission infrastructure is built, generating units need to be able to connect to the transmission infrastructure to be utilized. The ability to develop these transmission links should be contingent on the level of reliability and performance of the generation and transmission system itself. This article has briefly described some key elements involved in the transmission of energy.

Leave a Comment

Your email address will not be published. Required fields are marked *