Better batteries and more investment into the main electricity grid have helped delay a predicted natural gas shortage in Australia by a year. A shortfall is now seen during periods of peak demand in the southern regions by 2029, with a need for additional supply from 2030, the Australian Energy Market Operator said in its this year’s Gas Statement of Opportunities report . The region covers the s...
Better batteries and more investment into the main electricity grid have helped delay a predicted natural gas shortage in Australia by a year. A shortfall is now seen during periods of peak demand in the southern regions by 2029, with a need for additional supply from 2030, the Australian Energy Market Operator said in its this year’s Gas Statement of Opportunities report . The region covers the states of New South Wales, Victoria, Tasmania and South Australia, as well as the Australian Capital Territory. The forecast gas supply crunch comes as fields on the east coast rapidly deplete, forcing Australia to balance energy security with its ambitious emissions goals. However, the deferred retirement of the coal-fired Eraring plant, improving battery technologies and investments into grid infrastructure have postponed the shortfall, according to the market regulator, which last year also pushed back its forecast. The trend of declining gas consumption is also steeper than projected a year ago, as electrification of the industrial sector is projected to gather pace as a preferred pathway to emissions reduction, AEMO said.
Wengen Ling/E+ via Getty Images Constellation Energy ( CEG ) is one of the largest power producers in the United States and the nation’s leading supplier of carbon-free electricity. They have a dominant position in nuclear power, which is increasingly emerging as one of, if not the most trustworthy, clean energy sources across markets, and specifically in the rapid growth mode toward AI data cente...
Wengen Ling/E+ via Getty Images Constellation Energy ( CEG ) is one of the largest power producers in the United States and the nation’s leading supplier of carbon-free electricity. They have a dominant position in nuclear power, which is increasingly emerging as one of, if not the most trustworthy, clean energy sources across markets, and specifically in the rapid growth mode toward AI data centers. That’s where the discussion lies this week, as CEG has been presented as one of the suppliers for power in collaboration with NVIDIA ( NVDA ) and Emerald AI in the coming years of their data center plans. Seeking Alpha The stock traded higher on Monday morning as the news surfaced and pulled back by trading day’s close. I gave CEG a buy about a year ago, and the stock has returned 36% since. I switched my rating to a hold this past fall, as I felt the stock needed a slight correction on raised valuation and dragging margins. I think the time has returned again as a buy scenario for CEG. Some fundamentals are still lagging a bit, and that would be my biggest concern for the moment. But the stock has corrected over 25% from its high this past fall and is surrounded by a plethora of promising and exciting news, including the recent possible NVDA partnership, as well as some secured long-term contracts with other huge data center players. This is the future, and CEG has positioned themselves in the middle of a period seeking long-term and clean electric demand. NVDA & Emerald AI Outlook The big news this week coming from CERAWeek in Houston is the development of a partnership between NVDA, Emerald AI, and several big U.S. energy companies like CEG. The goal is to develop next-generation AI factories that can operate flexibly on the power grid by adjusting usage in response to grid conditions as needed. This is suggested to be done through NVDA’s Vera Rubin DSX architecture with Emerald AI’s conductor platform. Energy providers like CEG have massive long-term revenue potenti...