The November edition of our Lite Monthly Carbon & Energy Market Update is now available.
Below is our November edition of our Lite Market Update.
Read on for an overview of key market developments. The full version of the update, with detailed commentary from our industry analysts, is available to paid subscribers. Contact our team to find out more.
• October brought somewhat more price volatility in Spot electricity pricing, particularly the Southern States, brought about by some sudden swings in Wind generation, stormy weather depressing Solar output and a Basslink outage in the case of Tasmania.
• Flat Futures prices for next year experienced a spike mid month upon market concerns around availability of services from some major ASX clearing participants. Price drops on coal and gas Futures contributed to price falling back down towards end of the month.
• Wholesale domestic gas prices fell by almost 50% mid-month upon down-time for an LNG export train combined with warmer weather, but rose back up in the final days of the month following colder, stormy weather in the Southern States.
• The Victorian State government chose six Victorian renewable projects totalling 623 MW (all Solar Farms, some with Storage planned) for offtake agreements as part of its VRET2 process. Shortly following this announcement the Victorian government announced it would look to bring back the State Electricity Commission, the previous State owned electricity entity, should Labour retain government from the upcoming November election.
• At time of writing the COP27 Climate conference in Egypt is underway and major topics of discussions are preventing Greenwashing, sharpening up climate reporting and harmonising companies' carbon data.
• ACCUs did not move much in price across October, STCs remained stable.
• LGCs continued to rise in price for most vintages.
Feature 1: Victorian VRET2 process
On October 25th, the Victorian State government announced they had chosen six renewable energy projects that they will be finalising Bundled PPA contracts with, whereby the State government takes a contract position in the Energy and receives LGCs from the projects which will all be surrendered annually.
Additional commentary is available in the full version of the update. Contact our team to find out more.
Feature 2: Neoen and BHP sign market leading baseload renewable contract
BHP and Neoen have signed a baseload renewable energy contract to supply BHP’s Olympic Dam project in South Australia.
Additional commentary is available in the full version of the update. Contact our team to find out more.
Data and charts are sourced from our digital workbench CORE Markets, with insights from our advisory team. If you have any queries or want to know more, please get in touch.
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