Electricity rates update – February 2018

Electricity rates – Futures prices dropped in all states under review from 1 February 2018 through to 12 March 2018.

The biggest drop was experienced in New South Wales with 4.2%. South Australia followed, experiencing a 2.7% drop with Queensland close behind with a 2.6% drop.

Victoria registered a drop of 1.4%. The trend was established through the month of February and continued into March, except for Queensland and Victoria which edged up slightly.

The average drop in futures prices across the board was of 2.7% from 1 February to date. Prices are still up by between 15% and 126% when compared to 24 months ago.

All states average

Futures prices across Australia have been trending down since the new year and that has largely been attributed to the huge number of renewable energy projects that have already come on stream or are expected to later in the year.

The big news is that the Federal Government has announced that it has struck a deal with the governments of New South Wales and Victoria to buy out their shares in Snowy Hydro. This will pave the way for the expansion of Snowy 2.0.

When completed in 2024, Snowy Hydro 2.0 will have an output of 6,000 MW of electricity.

The rooftop solar boom also continues with massive discounts available for businesses that want to make the switch to solar.

The trailblazing path set by South Australia in renewable energy technology continues as the state set itself a new target of 75% renewables.

New South Wales and Queensland are hot on the trail with new solar projects pushing up generation capacity. Victoria, meanwhile, is heading down the wind and battery path.

Source: www.asxenergy.com.au

Note: The above electricity rates are based on the average of Calendar Year 2018, 2019, 2020 baseload futures prices.

New South Wales electricity rates

Wholesale futures prices in New South Wales dropped in February by an average of 4.2%. This is reflected in the rates that are currently being offered by retailers to large market electricity customers in New South Wales.

The state is currently experiencing a boom of both large scale and rooftop solar panels. A total of 33 wind and solar energy generating a total of 4,750 Megawatts of power will be constructed in New South Wales’ renewables boom in 2018.

Many analysts believe that this is the biggest contributing factor in prices being driven down across the state.

EnergyAustralia is also pushing its transition away from coal and will be building a biomass plant near Lithgow.

Another interesting trend taking hold in New South Wales is the push for total solar by universities and some country towns.

The University of New South Wales announced that it will be sourcing 100 percent solar energy while the Newcastle University announced that it plans to build its own solar arrays to be 100 percent energy self-sufficient.

The rural town of Lismore has also announced its intention to go 100 percent solar and has crowd-funded a floating solar generation plant.

Queensland electricity rates

Wholesale futures prices in Queensland dropped in February by an average of 2.6%. This is reflected in the rates that are currently being offered by retailers to large market electricity customers in Queensland.

Queensland has seen an upsurge in the number of solar projects that are in the pipeline for the next year and many of them are expected to come online this year.

Queensland also connected Australia’s first major solar battery facility to the national grid.

Lakeland Solar and Storage will provide power to 3,000 homes and businesses on the Cape York Peninsula, some 240 kilometres north west of Cairns.

South Australia electricity rates

Wholesale futures prices in South Australia dropped in February by an average of 2.7%. This is reflected in the rates that are currently being offered by retailers to large market electricity customers in South Australia.

It is state election month in South Australia and Premier Jay Weatherill, who is seeking re-election, has put energy prices and renewable energy generation at the top of his campaign list.

He wants to enter into another partnership with Elon Musk to build the world’s largest virtual power plant and has also promised a new pumped hydro plant and more solar.

South Australia has also pushed its renewable energy target up to 75% of total generation.

South Australia has also been buoyed by news that German battery manufacturers Sonnen will be building a new production line near Adelaide.

Victoria electricity rates

Wholesale futures prices in Victoria dropped in February by an average of 1.4%. This is reflected in the rates that are currently being offered by retailers to large market electricity customers in Victoria.

Victoria is still experiencing the largest price increase over the past two years, with futures prices still up a whopping 124%, compared to South Australia which is down 17%.

Victoria is still reeling from the closure of the Hazelwood plant in March 2017 and is also struggling to cope with demand after problems at the Loy Yang plants.

Victoria’s supply problems have been partly offset by the incredible performance of the Tesla and Neoen wind and battery plant in SA which dispatched power immediately to prevent the grid from tripping.

Victoria’s government has since announced that it will be teaming up with Tesla and Neoen to build its own battery array in Bulgana.