Everyone is wondering why spot and futures prices are so high at the moment. There is more than one extraordinary factor involved here, including fall-out from the war in the Ukraine to large a degree, but today we look at one that can be easy to miss.
The Electricity Authority’s Market Development Group (MDAG) recently consulted on the initial phase of its investigation into price formation, with 100% renewable generation in our energy-only market. Energy Link contributed to this work and has also submitted.
The CFD index pushed up again this month, toward the ASX three-year average, but the FPVV index went down slightly on a greater volume (relative to CFDs). So overall, the main index rose by 1.8% to 11.3 c/kWh.
As we make the transition to net-zero carbon, it’s always interesting see forecasts of emissions in the future. Every time we run our quarterly long-term forecast, the ‘Price Path’, we get updated forecasts of how emissions might change in the electricity sector.
The frequency of blog posts fell off last year after October as we found ourselves in an early Christmas rush period. We hope to be more consistent this year. First up, our submission on the Electricity Authority’s wholesale market review.