October 2023 – Market Update

Prices were down, down, down in the spot market in October, and the follow-on effects filtered through to the contract market.

Spot market

Turning our attention to the spot market, we saw prices continue to decrease across the east coast throughout October.

A combination of relatively mild weather and strong renewable output led to a decrease in demand for energy from the grid throughout the month, which caused prices to fall in Queensland (down $13.72 at $37.05), New South Wales (down $22.46 at $42.09) and Victoria (down $9.12 at $17.19).


Contract market

In the contract market, prices have also fallen across the east coast, reflecting the continued drop in price in the spot market. Cal 25 prices finished the month lower in Queensland (down $8.05 at $93.65), New South Wales (down $11 at $114.40) and Victoria (down $4.50 at $68.70).

Looking further ahead, Cal 26 prices are also following the trend set by the spot market, dropping in Queensland (down $5.50 at $90.25), New South Wales (down $10.30 at $118.45) and Victoria (down $5.50 at $69.50).

Environmental market 


The environmental market tends to be quiet in October, and this year was no exception.

With more sellers than buyers in the market, we saw minor decreases in the prices of Large-Scale Generation Certificates (LGCs, down $2.25 at $49.50) and Australian Carbon Credit Units (ACCUs, down 15 cents at $30.25).

Prices for Small-Scale Technology Certificates (STCs) actually fell at the start of the month, as the STC Clearing House finally came out of deficit and a level of wholesale trading resumed.


As the month went on however, buyers started purchasing STCs for their Quarter 3 liability, and the Clearing House re-entered deficit. That led to STC prices bouncing back towards the usual $40 mark, finishing the month down just 10 cents at $39.90.

By the end of the month, the Clearing House was in deficit by 1.3 million certificates.

And that’s it for October – good luck to everyone growing out their moustaches for Movember, and we’ll see you back here for another update next month!