COVID-19 continues to effect the Australian energy market, as softening LNG demand and falling Asian LNG prices impact the local gas prices. The average gas price across Australia’s wholesale gas markets fell by almost 20%, from around $6/GJ in February, to less than $5/GJ for March.
Stage 3 shutdown measures have also had a marked effect on operational demand, which at 15.1TWh for March, was at its lowest level in more than 15 years.
Electricity Spot Prices
Soft domestic gas prices and lower demand continue to impact regional electricity spot prices. The average price for March across the NEM was just $43/MWh, which was a drop of 17% from the previous month. The average price for all mainland states was the lowest since 2016.
Forward prices also continue to fall across the NEM, the FY-20/21 forward price is now below $50/MWh, with all regions now fetching below $60/MWh for the next financial year.
The LGC spot price softened further during March and is now below $30/certificate for the first time since 2014. The Cal-20 LGC forward price softened during March to below $30/MWh while future years remained mostly constant during the month.