An increase in available generation and the end of the financial year made their mark on the energy market in June.
Spot market
In the spot market, we saw prices fall in Queensland (down $62.28 at $102.62), New South Wales (down $88.79 at $105.20) and Victoria (down $72.62 at $54.53).
This was largely due to increased availability, with units coming back online in June.
Combined with a significant increase in solar generation and a slight increase in wind generation, this added enough additional generation to the market to lead to a significant decrease in prices.
Contract market
In the forward market, we saw the gap in price between Queensland and New South Wales tighten.
Following recent work on the Queensland-New South Wales Interconnector, there’s been an increase in energy flowing north from down south, which contributed to Queensland’s price staying steady (up just 55 cents at $123.80) despite prices in New South Wales (down $4.10 at $137.50) and Victoria (down $6.80 at $85.90) going down.
Looking ahead to Cal 25, we saw prices decrease in all states. Prices were down 60 cents at $96.80 in Queensland, down $2.10 at $123.90 in New South Wales, and down $6.10 at $76.70 in Victoria.
With generators looking to hit their hedge targets, there were more sellers than buyers as June 30 approached.
After the extremely high prices we saw in the market this time last year, retail customers have taken a cautious approach over the last 12 months, proactively locking in lower prices as they became available.
This approach by retail customers means we didn’t see the dramatic end-of-financial-year rush we have in previous years.
Environmental market
In the environmental market, softer bids on Large-Scale Generation Certificates (LGCs) saw prices drift lower throughout the month, down $3.75 at $54.50.
Prices were also down for Australian Carbon Credit Units (ACCUs). With an increase in sellers in the market, looking to close out their positions and lock in revenue before the end of the financial year, ACCUs were down $2.90 at $31.85.
The clearing house for Small-Scale Technology Certificates (STCs) once again remained in deficit throughout June, keeping STCs at the fixed price of $40.
And that’s it for June… wishing you all the best for July from the team at Stanwell Energy!
