Market Update October 2022

Lite Market Update October 2022

Below is our October 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.

Key points for this month

• September was similar to August in terms of Spot electricity pricing, with low volatility across the NEM and milder weather/higher Solar output aiding lower average prices in Southern Australia. Flat Futures prices however moved up across the month influenced largely by rising coal price futures
• Wholesale domestic gas prices rose back up following the APLNG train for export returning to operation in early September before warmer weather late in September helped to ease prices.
• ACCUs recovered in price, STCs remained stable, while the LGCs continued to rise in price for most vintages.
• The Queensland government released its Energy and Jobs Plan in which it has set a target for 70% renewable electricity by 2032 – the worlds largest Pumped Hydro Power Plant is a central pillar to the achievement of this target.
• The Victorian government announced a new energy storage target, more than doubling from 2.6GW in 2030 to 6.3GW in 2035, supported by a $38.2 million investment from the Energy Innovation Fund, which adds to the $119m invested into a 125MW battery near Bendigo.
• AGL announced that it intends to close Loy Yang A Power Station in Victoria by 2035.
• The Australian Energy Market Commission has proposed a market rule change to increase the Administered Price Cap from $300/MWh to $600/MWh.

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Feature 1: Queensland announces new renewable energy targets (70% by 2032 and 80% by 2035)

On September 28^th the Queensland State Government released its updated renewable energy target of 70% by 2032 and 80% by 2035, ending Queensland’s reliance on coal-fired power generation by this time.

Additional commentary is available in the full version of the update. Contact our team to find out more.

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Feature 2: AGL bows to shareholder pressure and announces plan to end coal-fired generation by 2035

On September 29^th, the day after the Queensland renewable target was unveiled, AGL Energy announced it was bringing forward the retirement of its most polluting generation plant, Loy Yang A.

Additional commentary is available in the full version of the update. Contact our team to find out more.

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Event: Join us at the Australian Emissions Reduction Summit in Sydney

Come along and meet our team at the Carbon Market Institute’s 9th Australasian Emissions Reduction Summit.

The Summit brings together all market participants, a broad spectrum of national and international business leaders and professionals, as well as leaders from all levels of Australian government.

You can find more information and register to attend here: summit.carbonmarketinstitute.org

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