2021 finished with a flourish, with 24 contracts qualifying for inclusion in the index and a total volume of 2,471 GWh, the second highest volume since mid-2018. This may reflect pent-up demand for contracts after a long period of high prices, with buyers taking the opportunity to lock in prices while the spot market was relatively settled in the lead-up to the summer holidays.

 

But here we are in 2022, hydro storage is falling, irrigation demand is up as the South Is east coast dries out, and there are concerns over an extended summer La Nina period, which could keep rain from falling in the hydro catchments for some time.