May 2024 – Market Update

Market Update – May 2024

Spot market prices increased significantly in May – and that volatility sent ripples through the forward market.

Spot market

The  spot market was impacted by a perfect storm of unit outages and low wind output last month, which saw  prices increase significantly. 

New South Wales was hardest hit, with temporary constraints on the Queensland-New South Wales Interconnector limiting the flow of power down south when it was needed most. 

The spot price finished the month up $7.94 in Queensland (at $92.69), up $183.68 in New South Wales (at $273.56), and up $48.22 in Victoria (at $132.97).

Contract market

The spike in spot prices was a stark reminder of just how volatile the market can be when impacted by external forces. It sent ripples through the forward market, pushing up the curve.

Cal 25 prices finished the month up $14.05 in Queensland (at $111.55), up $26.85 in New South Wales (at $136.40), and up $9.05 in Victoria (at $81.25). 

Cal 26 prices also increased as a result of that volatility, finishing the month up $10.10 in Queensland (at $103.35), up $25.85 in New South Wales (at $136), and up $9.20 in Victoria (at $77.95). 

 

Environmental market

The environmental market was remarkably steady by comparison, but high levels of liquidity did put a little downward pressure on prices for Large-Scale Generation certificates (LGCs), which closed the month down 35 cents at $46, and Australian Carbon Credit Units (ACCUs), which finished down $1 at $33.


In other news, the Clearing House for Small-Scale Technology Certificates (STCs) moved out of deficit and back into surplus during May. 

This shift allowed wholesale STC trading to resume, though mostly at prices very close to the Clearing House rate of $40. STC prices ultimately finished the month at $39.90, with no change from the previous month.

 

And that’s another recap of the month. 

If you’d like to learn more about how we can add value to your business or support your decarbonisation goals, please reach out to our team.

Have a great month ahead, and we’ll see you here again next month.