Electricity rates – Futures prices dropped in New South Wales, Queensland, South Australia, and Victoria from 1 April through to May 17.
The biggest drop was experienced in New South Wales with 3.4%, but this trend reversed sharply in May, with peak rates rising by almost 3% over the last week. South Australia experienced an overall drop of 2.4% and Victoria 2.2%. Queensland registered a drop of 1.7%.
The trend was established through the month of April and prices continued to slide in May in all states except New South Wales, which edged up slightly by 0.24%.
The average drop in futures prices across the board was of 2.4% from 1 April to date. Prices are still up by between 9% and 71% when compared to 24 months ago.
All states average electricity rates
| Futures Price Movement since: | Current Month to Date | 2 Months to Date | 3 Months to Date | 6 Months to Date | 12 Months to Date | 24 Months to Date |
| 1-May-2018 | 1-Apr-2018 | 1-Mar-2018 | 1-Dec-2017 | 1-Jun-2017 | 1-Jun-2016 | |
| NSW – Average | Up 0.24% | Down 3.43% | Down 6.87% | Down 9.38% | Down 15.72% | Up 37.73% |
| QLD – Average | Down 0.31% | Down 1.70% | Down 1.34% | Down 5.05% | Down 15.14% | Up 9.21% |
| SA – Average | Down 0.55% | Down 2.35% | Down 3.22% | Down 2.75% | Down 18.99% | Up 23.74% |
| VIC – Average | Down 1.30% | Down 2.21% | Down 2.92% | Down 3.99% | Down 12.27% | Up 70.74% |
Note: The above electricity rates are based on the average of Calendar Year 2018, 2019, 2020 baseload futures prices.
Futures prices in all states under review have continued to trend down by a few percentage points in April, mostly due to the number of large-scale renewable energy projects coming on stream in the first half of 2018.
The Clean Energy Regulator announced that a staggering 8,000 Megawatts of power have been added into the National Energy Market from renewable sources since 2016.
The boom shows no sign of stopping, and the Australia Energy Resources Assessment found that renewable energy generation will continue to grow through to 2020 and beyond.
In fact, investment in the renewable energy sector skyrocketed by 147 percent to $8.5 billion in 2017.
This means that projections for meeting the Renewable Energy Target, which comes to a close in 2020, have already been met.
The Energy Security Board has also been given the go-ahead by the Council of Australian Governments to continue developing the National Energy Guarantee .
The full workings of the NEG are expected to be unveiled in August before the policy is implemented across Australia.
Power Purchase Agreements for renewable source energy are also becoming a very attractive option for businesses because they are becoming cheaper than retail energy contracts.
New South Wales electricity rates
| Futures Price Movement since: | Current Month to Date | 2 Months to Date | 3 Months to Date | 6 Months to Date | 12 Months to Date | 24 Months to Date |
| 1-May-2018 | 1-Apr-2018 | 1-Mar-2018 | 1-Dec-2017 | 1-Jun-2017 | 1-Jun-2016 | |
| NSW – Average | Up 0.24% | Down 3.43% | Down 6.87% | Down 9.38% | Down 15.72% | Up 37.73% |
Wholesale futures prices in New South Wales dropped in April (to date) by an average of 3.43%. Peak prices, however, rose sharply in the past week, by about 3%. Prices are still 38% higher than what they were in 2016. Future prices edged up slightly in May by 0.24%.
This is reflected in the rates that are currently being offered by retailers to large market electricity customers in New South Wales.
The big news in New South Wales is that the Alinta Energy has made a $250 million bid for AGL’s Liddell coal-fired plant . The Turnbull government has been applying pressure on AGL to keep the plant open beyond its 2022 expiry date or sell it to a bidder.
AGL has repeatedly said that it is getting out of coal and wants to turn the Liddell plant into a renewables hub.
Origin Energy has also announced that it will invest $250 million into its Shoalhaven pumped hydro plant in the Illawarra region to double its energy generation capacity. Once complete, the project will generate enough energy to power 80,000 homes.
Queensland electricity rates
| Futures Price Movement since: | Current Month to Date | 2 Months to Date | 3 Months to Date | 6 Months to Date | 12 Months to Date | 24 Months to Date |
| 1-May-2018 | 1-Apr-2018 | 1-Mar-2018 | 1-Dec-2017 | 1-Jun-2017 | 1-Jun-2016 | |
| QLD – Average | Down 0.31% | Down 1.70% | Down 1.34% | Down 5.05% | Down 15.14% | Up 9.21% |
Wholesale futures prices in Queensland dropped in April (to date) by an average of 1.7%. The trend continued from March.
Futures prices are still 9% higher than what they were in 2016. This is reflected in the rates that are currently being offered by retailers to large market electricity customers in Queensland.
This month, Queensland’s biggest solar farm began exporting power to the grid.The 100 MW Clare Solar farm began operations in May. Queensland is a hotbed of solar activity this year, with 1,400 MW worth of projects to begin operating this year.
The Australian Energy Regulator is also set to open an investigation into price gouging by Queensland electricity companies. The AER will look into claims that companies passed on much higher costs onto consumers than they should have.
South Australia electricity rates
| Futures Price Movement since: | Current Month to Date | 2 Months to Date | 3 Months to Date | 6 Months to Date | 12 Months to Date | 24 Months to Date |
| 1-May-2018 | 1-Apr-2018 | 1-Mar-2018 | 1-Dec-2017 | 1-Jun-2017 | 1-Jun-2016 | |
| SA – Average | Down 0.55% | Down 2.35% | Down 3.22% | Down 2.75% | Down 18.99% | Up 23.74% |
Wholesale futures prices in South Australia dropped in April (to date) by an average of 2.35%. The trend continued from March.
Futures prices are still 24% higher than what they were in 2016. This is reflected in the rates that are currently being offered by retailers to large market electricity customers in South Australia.
Coal giant Delta Electricity is charging into the renewable energy market in South Australia after plans for a 230-megawatt pumped storage facility were given the state government’s seal of approval.
The project will be sited at Goat Hill, Port Augusta and will be able to supply 230 MW for eight hours.
Japan’s Mitsubishi Corporation has also announced backing for a “virtual pipeline” project which will link liquid natural gas imports linked to a new firming capacity power station.
The $800 million project has been developed by Melbourne based consultancy Integrated Global Partners.
Victoria electricity rates
| Futures Price Movement since: | Current Month to Date | 2 Months to Date | 3 Months to Date | 6 Months to Date | 12 Months to Date | 24 Months to Date |
| 1-May-2018 | 1-Apr-2018 | 1-Mar-2018 | 1-Dec-2017 | 1-Jun-2017 | 1-Jun-2016 | |
| VIC – Average | Down 1.30% | Down 2.21% | Down 2.92% | Down 3.99% | Down 12.27% | Up 70.74% |
Wholesale futures prices in Victoria dropped in April (to date) by an average of 2.2%. The trend continued from March.
Futures prices are still 71% higher than what they were in 2016. This is reflected in the rates that are currently being offered by retailers to large market electricity customers in Victoria.
The big news from Victoria is that French renewable energy company Neoen has started work on the $550 million Bulgana wind and battery storage project .
The 194 MW project will supply power to Nectar Farms under a Power Purchase Agreement as well as selling energy back into the grid.
Another renewable energy project which is taking shape in Victoria is the addition of a 25 MW battery to the Gannawarra Solar Farm in Victoria’s North West. It will connect to Energy Australia’s system and also the National Energy Market.
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