The La Niña weather conditions are the story of the market at the moment. We saw plenty of rain in November, and a significant amount of daytime cloud cover.
As a result, we’re not seeing the solar penetration that usually drives demand down in the middle of the day.
Add that to the humidity that’s got everyone switching on their air conditioners, and spot prices stayed consistently strong throughout November, with a flat price of $96.55 and a peak of $132.36.
This upward trend flowed through to the contract market. The Calendar 2022 contract closed at $73.25 in Queensland, $77.25 in New South Wales and $53.50 in Victoria.
The contract market is a bit like a shopping centre on Christmas Eve at the moment. Customers who held off on locking in their contracts for 2022 until the last minute are now putting out requests for tenders, and that’s also contributing to demand in the environmental market, with customers looking to lock in contracts that meet their renewable targets and aspirations.
Spot Large Generation Certificates (LGCs), Small Generation Units (STCs) and Australian Carbon Credit Unit (ACCU) prices all rose throughout November, on the back of strong buying demand.
That’s it for the November market wrap – Happy Holidays from all of us at Stanwell Energy!
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