Energy Market Update – a spot market snapshot from 30 March to 31 July 2021

In 2020 alone, over 23K Aussie households installed a solar battery. According to the most recent Clean Energy Council stats, this added 238 MWh (Megawatt-hour) of household solar battery capacity, further boosting Australia’s renewable energy revolution.

This is relevant because a continuously increasing uptake of renewable energy generation sources is pushing down wholesale electricity costs – not only for solar and battery homeowners, but for everyone connected to the grid. The Australian Energy Regulator (AER) reported wind and solar have cut wholesale prices to their lowest since 2015. Another analysis carried out by the Victoria Energy Policy Centre in 2019, claims solar PV pushed down wholesale electricity prices by $5.1/MWh as a net benefit for all grid consumers.

Researchers and economists alike seem to agree that we should challenge the thought of renewable energy generation necessarily increasing the wholesale prices we pay.

 

So… are electricity prices still rising?

First of all, it’s worth to mention prices in Australia’s National Electricity Market (NEM) are determined by a somewhat complicated bidding process. In essence, power generators place bids for supplying electricity to meet the expected demand in the grid for a particular period. These bids are accepted from cheapest to most expensive, with the final price (awarded to all bidders accepted) being the final and most expensive bid – often a gas generator.

As natural gas prices have increased, the more expensive running gas turbines has become, often overwhelming the downward pressure from renewable generation. Renewables bid into the market at low prices because their power is essentially free, displacing other more expensive competitor’s bids. Without renewables, the prices we pay would most likely be much higher.

Although the reduction of wholesale prices is great news, electricity bills are comprised by 7 main components, of which wholesale prices account for around 30%. Furthermore, movements in the forecast of wholesale electricity prices exert pressure on minimum feed-in tariff rates. This is cited as one of the reasons why Victoria’s minimum feed-in tariff rates have reduced from 10.2c/kWh to 6.7c/kWh. Other states and territories are likely to follow suit.

After the major retailer reprice of July and August, and with a lot happening in the energy industry at the moment, we’ve taken the opportunity to analyse the latest behaviour of the spot market across all regions. As a customer of Members Energy, you make 100% of the revenue when you trade your excess stored energy at a time when prices are higher than your standard feed-in tariff – for truly unlimited trading potential!

In a similar fashion to the last update, we have graphed spot price values broken down by region. The graphs include the fluctuations of the market over 4 months, from end of March to the end of July 2021 (124 days), reflecting the maximum and average values of the spot price for the whole day. Please note the Australian Energy Market Operator (AEMO) updates the spot price every 5 minutes and allocates an average price for every 30-minute slot as described in the aforementioned bidding process, which means there are 1,392 half hour spot prices through the day. The graphs below display the average and max values only.

The spot price in NSW / ACT

The maximum spot value for electricity in New South Wales (and the Australian Capital Territory) averaged 95.96 c/kWh, with peaks of up to $8.23/kWh throughout the period analysed.

Over 95% of days had maximum values above the state’s minimum guarantee of 6c/kWh, making this region the second-most consistent at surpassing and maintaining higher revenue margins for our members – between 1.88 and 15.99 times the min. FiT!

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The spot price in QLD

More than 94% of spot prices in Queensland remained above the minimum guarantee of 6c/kWh – with a clear peak of $15/kWh on the 25th of May at 17:00 hrs.

The maximum values in this region averaged $1.24/kWh, the highest potential for our members’ energy trading out of all regions in the NEM. Potential revenue margins in Queensland went between 2.12 and 20.83 times the minimum FiT!

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The spot price in SA

The South Australian maximum market values remained above the minimum feed-in of 6c/kWh in more than 94% of days analysed. These maximum values averaged 37.85 c/kWh, with the highest value reaching $7.04/kWh on the 18th of May at 18:30 hrs.

Our members in SA obtained revenue margins between 1.24 and 6.3 times the minimum FiT offered.

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The spot price in TAS

The Tasmanian maximum spot values averaged the 18.53c/kWh and remained above the minimum state’s guarantee of 8.47c/kWh for 70% of the period graphed.

Several intermittent peaks have been identified, with the highest value achieved recently hit $2.39/kWh on the 21st of June at 17:30 hrs. Maximum prices averaged 18.28 c/kWh, which meant a revenue margin of up to 2.15 times the minimum FiT offered.

For the days where average prices went under 8.47c/kWh, Members Energy customers in Tasmania received the minimum feed-in tariff guarantee.

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The spot price in VIC

For over 84% of the days analysed, the maximum spot price in Victoria remained above the 10.2c/kWh mark. Our customers in Victoria were able to trade their excess energy for up to $7.44/kWh on the 18th of May at 18:30 hrs.

The revenue margin for our Victorian members went as high as 3.9 times the minimum FiT offered!

And for those days where the market was not that favourable, Members Energy ensured our customers in this region received the minimum feed-in tariff guarantee of 10.2c/kWh.

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Remind me again, how does the trading of my electricity happen?

Thanks to the Evergen Intelligent Control software installed in your battery, you have access to the wholesale market rates to sell your excess stored energy. The market will go up and down as supply and demand throughout the day change, so there is no limit to the amount of spike events that can happen in one day. Likewise, there is no limit to the amount of energy you can sell – if you have any excess energy stored in your battery to sell during a spike event, you will trade with unlimited upside.

Share your story with us and you may be 1 of 4 Visa card winners

As a small energy company with big dreams of taking on the energy giants, we would love to hear your stories of success in our Virtual Power Plant. Here are some example questions to spark your creativity:

  • Have you saved money in your bills after switching to Members Energy?
  • Has your household’s energy consumption decreased since the Intelligent Control been installed in your battery?
  • Do you log in to the Members Energy app? How often?
  • What is the highest trading credit you have received from trading your energy at real market rates?

The team at Members Energy would like to thank you for choosing us to supply the electricity for your home. We will continue to work hard providing you regular updates of the energy industry to return the power back to you. Until next time!

T&C’s

  1. Information on how to enter and the prizes form part of these Terms and Conditions.

Participation in this promotion is deemed acceptance of these Terms and Conditions.

  1. Entry is only open to NSW, ACT, VIC, SA, TAS and QLD residents aged 18 years or older who are existing Members Energy residential or small business customers.
  1. Entries into the promotion open on Friday, 27 August 2021 and close at 9am AEDST on Tuesday, 21 September 2021 (“Promotional Period”).
  1. To be eligible to enter, Members Energy residential or small business customers must receive the promotional offer via email and have an active account. To enter, eligible entrants must fill out the form in this page during the Promotional Period:
    • a) Writing a story of 120 words or more, in which the customer answers to one or many of the promotion’s questions;
    b) Agreeing to these Terms and Conditions.
  1. Only one (1) entry is permitted per account address.
  1. The Promoter reserves the right, at any time, to verify the validity of entries and entrants (including an entrant’s identity, age and place of residence) and reserves the right, in its sole discretion, to disqualify any individual who the Promoter has reason to believe has breached any of these Terms and Conditions, tampered with the entry process or engaged in any unlawful or other improper misconduct calculated to jeopardise fair and proper conduct of thepromotion. Errors and omissions may be accepted at the Promoter’s discretion.
  1. Failure by the Promoter to enforce any of its rights at any stage does not constitute a waiver of those rights. The Promoter’s legal rights to recover damages or other compensation from such an offender are reserved.
  1. Incomplete, indecipherable,or illegible entries will be deemed invalid.
  1. If there is a dispute as to the identity of an entrant, the Promoter reserves the right, in its sole discretion, to determine the identity of the entrant.
  1. There will be four (4) subsequent prize draws conducted for this promotion. Entries close at 9am on Tuesday, 21 September 2021. Each draw will take place at Suite 2, Ground Floor/990 Whitehorse Rd, Box Hill VIC 3128 no later than Thursday, 23 September 2021 at 4pm. All times indicated are AEST/AEDST unless specified otherwise.Winners will be notified in writing within two (2) business days of the draw.
  1. The Promoter’s decision is final, and no correspondence will be entered into.
  1. The first four (4) valid entries chosen at random will each win a $50 Visa card.
  1. Total prize pool value is $200.
  1. Prizes, or any unused portion of a prize, are not transferable or exchangeable and cannot be taken as cash, unless otherwise specified.
  1. Any cost associated with accessing the promotional website or a mail server is the entrant’s responsibility and is dependent on the Internet service provider used.
  1. Should a winning participant’s entry be deemed invalid for whatever reason, another draw will take place on Friday, 24 September 2021. Winners, if any, will be notified in writing within two (2) business days of this supplementary draw.
  1. Nothing in these Terms and Conditions limits, excludes or modifies or purports to limit, exclude or modifythe statutoryconsumer guarantees as provided under the Competition and Consumer Act, as well as any other implied warranties under the ASIC Act or similar consumer protection laws in the States and Territories of Australia (“Non-Excludable Guarantees”). Except for any liability that cannot by law be excluded, including the Non-Excludable Guarantees, the Promoter (including its respective officers, employees and agents) excludes all liability (including negligence), for any personal injury; or any loss or damage (including loss of opportunity); whether direct, indirect, special or consequential, arising in any way out of the promotion.
  1. Except for any liability that cannot by law be excluded, including the Non-Excludable Guarantees,the Promoter (includingits respective officers, employees and agents) is not responsible for and excludes all liability (including negligence), for any personal injury; or any loss or damage (including loss of opportunity); whether direct, indirect, special or consequential, arising in any way out of: (a) any technical difficulties or equipment malfunction (whether or not under the Promoter’s control); (b) any theft, unauthorised access or third party interference; (c) any entry or prize claim that is late, lost, altered, damaged or misdirected (whether or not after their receipt by the Promoter) due to any reason beyond the reasonable control of the Promoter; (d) any variation in prize value to that stated in these Terms and Conditions; (e) any tax liability incurred by a winner or entrant; or taking of the prize.
  1. The Promoter collects personal information (“PI“) to conduct the promotion and may, for this purpose, disclose such PI to third parties, including but not limited to agents, contractors, service providers, prize suppliers and, as required, to Australian regulatory authorities. Entry is conditional on accepting to provide this PI. The Promoter will also use and handle PI as set out in its Privacy Policy, which can be viewed at https://membersenergy.com.au/privacy-policy/. In addition to any use that may be outlined in the Promoter’s Privacy Policy, the Promoter may, for an indefinite period, unless otherwise advised, use the PI for publicity and research purposes, including sending electronic messages or telephoning the entrant to discuss the information provided. The Privacy Policy also contains information about how entrants may opt out,access, update or correct their PI, how entrants may complain about a breach of the Australian Privacy Principles or any other applicable law and how those complaints will be dealt with. All entries become the property of the Promoter. The Promoter will not disclose PI to any entity outside of Australia.
  1. The Promoter is Members Energy Pty Ltd (ABN 72 638 175 621) of Suite 2, Ground Floor/990 Whitehorse Rd, Box Hill VIC 3128, telephone 1300 98 99 00.
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