Dec-22 Energy News Bytes

January maximum demand levels were low compared to historical levels resulting in relatively soft spot price outcomes, except for brief price volatility in QLD and NSW. High offers from Hydro kept TAS prices around $120/MWh. Gas prices retreated below $14/GJ in following a lengthy rally in Q4-24.

The NEM added 185MW capacity in January. Generator-Weighted Average prices declined for wind and solar farms in most regions, with solar farms facing deeper discounts to Time-Weighted Average prices. Solar curtailment remained high, particularly in SA. QLD's reliance on NSW during peak demand grows.

As we navigate through the summer season, the energy market is displaying several notable trends for Q1-25 as forward prices struggle to be delivered. We check the impact on the upcoming FY-25/26 which is a key component for Regulators setting the forthcoming regulated maximum residential tariffs.