After a 2-year break, Procurement Australia held their annual conference and invited Carl Daley to speak.
Procurement Australia Annual Conference had a theme of Procuring a better world, and included a range of speakers including Zondwa Mandela as the Key Note Speaker.
As the grandson of Nelson and Winnie Madikizela-Mandela, Zondwa Mandela has inherited the responsibility of continuing his grandparents lifelong pursuit of equality, human rights, equal opportunity and social justice. To this end, the Mandela Legacy Foundation was created to carry on these ideals and is charged with continuing to fight for these beliefs.
A copy of the energy market presentation is shown below:
Australia has struggled to set in place a long-term energy and emissions policy. At the last conference held in 2019, a recap to the various policies under various Governments and Prime Ministers was outlined and is summarised in the following ...
Over the last 2-years, the challenge of energy and emission policy setting has continued ...
In a big hurry, a Net Zero Policy was set in place ...
The Energy Security Board was tasked with designing a post 2025 market design ...
As part of the election policy, the Australian Labor Party led with ...
After winning the election, the Australia Labor Party progressed their election promise ...
The State and Federal Ministers convened in August 2022 and agreed on an important communique ...
It seems that Australia for the first time in a very long time has a Government and a Parliament that is capable of setting a long-term energy and emissions policy.
In the meantime ...
There have been 4 primary drivers of high energy prices and these are summarised as ...
In the trading energy market is a closed financial loop and so every $1 gained, is funded by another party. Consumers are the biggest losers, but so are others ...
Since preparing the slide above, there is now 7 small retailers that have failed.
Over the last financial year, a solar run-of-plant PPA under-performed as an effective hedge, and a simple flat swap with Large Generation Certificates would have out-performed the best performing solar farm in the NEM.
It is an unusual move to refer to an Olympian and Commonwealth champion at a procurement conference, but in terms of driving for outcomes, there are lessons to learnt from Emma McKeon ...
Risk management stress testing of business models and energy trading positions have been applied over the last few months. Those that have survived or could withstand the stresses probably had a business model that could withstand the pressure, and/or had risk management practices that were sufficiently active and prudent. For those who have not faired very well, will be reflecting upon their business model and/or risk management policies and practices.
Part of the risk management stresses is the capitalisation of market players. If players were under-capitalised, they would have been sorely tested and possibly taken into extinction. The capital required to trade and be a licensed Retailer has escalated over the last few months.
Managing energy costs and energy trading positions cannot be successfully completed without due care and diligence.
In conclusion ...
