Electricity Market Prices – Week ending 24 August 2018

Key electricity market observations for the week ending 24 August 2018:

  • On Friday 24th August, Malcolm Turnbull was replaced by Scott Morrison as the 30th Prime Minister and leader of the Liberal Party by a leadership spill vote. The change of leadership has cast increased levels of uncertainty around the National Energy Guarantee (NEG) and what its fate will be. The sensitivity of having an emissions reduction legislated into an energy policy looks to be all but abandoned as Mr Morrison is yet to endorse the NEG since becoming Prime Minister.
  • CAL20 LGC prices increased throughout the week, up by $4.50/certificate to $29.50/certificate. Trading volume is limited for CAL20 certificates, however the movement in price is likely to be driven by the continued uncertainty surrounding energy policy, and on-going delays in new renewable projects being developed.
  • AEMO released their latest Electricity Statement of Opportunity (ESOO) on Friday 24th August. Unlike the previous ESOO, and the more recent Integrated System Plan (ISP), AEMO is now expecting a heightened probability of the reliability standard not being met.
  • Andy Vesey has resigned as CEO of AGL. The reason for his resignation is not known, however his resignation was coincidentally in the same week as the leadership spill.

Queensland

New South Wales

Victoria

South Australia

Source: AEMO / ASX Energy