CQ Energy has the experience and proven ability to deliver solutions for a wide range of clients encompassing all the major sectors of the energy market. Our clients and projects range from working with the largest energy businesses in Australia and large international investors on mergers and acquisitions to assisting medium sized energy consumers with their energy procurement requirements. The value of individual projects has ranged from very large $2.5 billion projects to pro-bono work for community groups.
The principals of CQ Energy each have over 25 years of experience in the Australian energy markets and have worked together as a team for over 15 years. The principals are backed by an exceptional group of staff that have been hand picked by the principals to deliver the best results for our clients. Our experience and expertise, combined with our proven track record of delivering optimal outcomes, has positioned CQ Energy as the leading independent energy market advisor and operator in Australia.
CQ Energy is a member of the expert panel for the Australian Energy Market Commission, the Essential Services Commisison of SA and the NT Utilities Commission.
Below is a selection of 15 case studies from the many projects that have been undertaken by CQ Energy.
CQ Energy has provided strategic energy advice for the SA Produce Market over the last 3 years. This has included a detailed review of its existing and projected energy demand profile and recommendations for alternate procurement mechanisms. The SA Produce Markets implemented CQ Partners’ recommendations which resulted in significant cost savings for the organisation and over 100 of its tenants that operate within the embedded network.
In addition to energy procurement advisory services, CQ Partners has driven the implementation of a hybrid generation facility, comprising backup generation, 2.5MW of solar PV and 2.5MW of battery storage which received substantial grant funding through the SA Government’s Energy Productivity Program. This project will interact with the National Electricity Market to provide the SA Produce Market and its tenants with a guaranteed, secure electricity supply, protection from high spot prices and a mechanism for optimising revenue from energy exported to assist with grid stability.
CQ Energy has undertaken several projects for SA Water, including the development of its energy portfolio management strategy. The strategy has provided SA Water with significant savings across its procurement of electricity, gas and renewable energy by providing market based alternative options at lower cost and at low risk compared to a standard retail contract.
The strategy effectively considered a portfolio approach to procuring electricity, gas, renewable and carbon certificates that enabled SA Water to utilise its considerable demand side management capability and embedded generation facilities. The strategy has been endorsed by the SA Water Board and SA Treasury and Government. CQ Energy is now an independent energy advisor to SA Water and sits on its Energy Risk Management Committee to provide external energy advice, particularly around hedging strategy and energy market contract advice.
Recently, CQ Energy provided a strategic review of SA Water’s mufti-site Project Zero business case. This required a detailed assessment of the business plan which comprised energy savings initiatives including the implementation of on-site renewable generation and energy storage at several SA Water sites.
CQ Energy have assisted a number of South Australian companies achieve substantial cost and greenhouse gas savings through CQ Partners’ delivery of level 2 energy audits and successful grant applications under the Energy Productivity Program.
Client activities ranged from corporate (building energy efficiency assessment), manufacturing and agriculture. Energy and cost savings identified included changes to network tariffs, changes to production processes, implementation of renewable generation, energy storage, led lighting upgrades and plant upgrades.
CQ Energy were engaged by the Local Government Association of South Australia (LGA) to assist them in procuring electricity for over 140 sites across 40 local councils with a combined annual consumption of 31GWh.
As a value-add to this engagement, CQ Energy conducted an assessment of all 140 sites’ network tariffs to ensure they were optimised based on recent demand profiles. Several recommendations were made by CQ Partners to adjust agreed demand levels, saving the LGA in excess of $200,000 per annum.
CQ Energy was engaged by ElectraNet to undertake a review of the business case relating to the operation of a 30MW energy storage device (ESD) to be located at the Dalrymple substation on the Lower Yorke Peninsula. The Energy Storage for Commercial Renewable Integration (ESCRI) project aims to provide system stability services in the form of local network islanding support, fast frequency response (FFR), frequency control ancillary services (FCAS) as well as the provision of $300/MWh caps from the ESD’s physical hedge capability.
CQ Energy’ assessed the benefit calculations employed by the asset operator (AGL) when determining the financial value provided by FCAS and firming services from the ESD. This report also provided an assessment as to the market outcomes for ElectraNet, the owner of the ESD, entering into a lease arrange with AGL, who will operate the ESD and receive revenue from FCAS and Cap services.
CQ Energy’ work on this project facilitated the successful awarding of grant funding to the consortium through the ESD to the Australian Renewable Energy Agency (ARENA), ultimately resulting to the commissioning of the project in 2019.
QIC Global Infrastructure purchased the 1184 kilometre Moomba to Adelaide Pipeline for $400.6m from APA Group. CQ Energy was the Energy Advisor to QIC for this successful acquisition. One of the key aspect of the project was working closely with the QIC team to assess the impact on MAPS of the changes underway in the East Coast gas markets including the impact of the introduction of 3 new LNG projects in Queensland. Another aspect was engaging with the banking syndicate on the assumptions underlying the acquisition.
The energy market analysis underpinned the future revenue stream for the pipeline and enabled QIC to achieve a great result in what was a highly competitive bid process. Subsequent to the acquisition, with the changes that have occurred in the East Coast gas markets, the pipeline has been able to fully contract its capacity and thereby maximise its revenue stream.
This project involved undertaking due diligence on a publicly listed electricity retailer in preparation to support a possible public takeover. As a public company was involved, the due diligence was undertaken on a very truncated time-frame, making this a very intensive project. The work included assessing all of the contractual arrangements and producing a full financial model of the business.
CQ Energy was engaged by an overseas investor to provide energy advice on the acquisition of a national energy company valued at over $2.4 billion dollars. As part of this project, CQ Energy undertook extensive due diligence on the physical assets including coal, gas and renewable generation assets, its gas and electricity retail business and all of the commercial arrangements. CQ Energy produced a financial model of retail business which dovetailed into the whole of business financial model.
Key components of the project included providing expert advice on the reasonableness of the vendors underlying business assumptions, identifying and evaluating the various operational, contractual and market risks in the business, identifying opportunities and threats, providing advice on the future direction of the business and determining their impact on the future revenue stream. This advice was critical in ensuring the client accurately valued the business.
A large energy retailer engaged CQ Energy to undertake the role of its Chief Risk Officer on a short term basis after the loss of this key person in their business. This engagement incorporated undertaking a review of its energy risk management function and providing advice on its energy market risk management framework.
CQ Energy project managed the Bolivar Waste Water Treatment Plant generation supply upgrade. This project utilised methane gas from the Boliver Waste Water Treatment Plant to produce renewable energy and supply hot water to heat the plant digesters that is necessary to sustain the treatment process.
Working closely with SA Water, CQ Energy undertook the financial analysis, recommended the preferred option, worked through the various approvals and participated in the procurement and implementation phases of the project.
The project required new efficient reciprocating engines to be installed to maximise the production of electricity from the available biogas, buiding a chemical dosing plant to treat the biogas, connecting to natural gas supply and conversion of an existing gas turbine to run on natural gas for additional security of supply. The $26m project reduced greenhouse gas emissions by more than 11,000 tonnes per annum and generated sufficient energy to meet 85% of the electricity requirements of the wastewater plant.
CQ Energy provided advice to a renewable energy producer on their long term strategic business plan. Subsequently CQ Energy worked with the renewable energy producer to take them through the regulatory process to obtain a retail electricity licence including putting in place all the required operational frameworks. The renewable energy producer has grown rapidly and has become one of the most innovative electricity retailers in the NEM.
CQ Energy worked with a wind farm developer to assist in taking their project through the approvals process to commercial operation. This included identifying and negotiating innovative energy off-take arrangements which are critical to the commercialisation of all renewable projects.
Facing rising energy costs, a large industrial company engaged CQ Energy to review their commercial energy arrangements and to develop an energy management strategy focused on reducing their overall energy costs.
This project involved reviewing the existing contractual arrangements, identifying the immediate cost reductions, recommending a new energy procurement strategy, negotiating new contractual arrangements and implementing a portfolio based energy management strategy. The outcome was a multi-million dollar reduction in their overall energy costs. CQ Energy continues to work with the client to pro-actively manage their energy costs.
An energy infrastructure owner engaged CQ Energy to provide ongoing energy market services to support the participation of its assets in both the National Electricity Market in the eastern states and the Wholesale Electricity Market in Western Australia. CQ Energy manages the market interfaces, undertakes all of the required bidding and dispatch services and provides settlement services for these gas fired and renewable electricity generation assets.
The Gas Market Reform Group was established by the Council of Australian Governments Energy Council in August 2016 to lead the design, development and implementation of major changes in the Australian gas market. CQ Energy has actively participated in this gas market reform process with the objective of ensuring the changes would produce outcomes that would benefit gas customers. Subsequently CQ Energy was approached to participate in the Gas Market Reform working groups to provide our gas market expertise and to represent the interests of large gas consumers.
Through this process, CQ Energy has been successful in ensuring that the long term interests of large gas consumers have been taken into consideration in the various gas market reform processes.