Market Update: AEMO Lifts the NEM Suspension … | Environmental Certificate Prices for June 2022

Market Update: The Suspension of the National Electricity Market (NEM) lifted by AEMO

Before discussing June’s environmental certificate scheme prices, let’s take a look at the latest updates on the energy crisis and the Australian Energy Market Operator’s (AEMO) stand on National Electricity Market’s (NEM) functioning.

If you’ve been following the news, you may recall the emergence of the energy crisis in Australia last month, which had prompted AEMO’s drastic intervention with the unprecedented action of suspending NEM to bring the situation under control. Initially, industry analysts were unsure about how long AEMO’s suspension would last. 

Eventually, AEMO lifted the suspension on June 24, 2022. AEMO deemed that the NEM could proceed with its regular operations. Electricity bidding and dispatching have normalised since, apart from a few manual interventions from AEMO. Nevertheless, it is predicted that the market condition will remain dynamic since the suspension was lifted. 

 

AEMO said, “Several factors across the interconnected electricity and gas markets are the challenges faced by eastern Australia. High electricity demand, unplanned plant maintenance, transmission outages due to scheduled maintenance, and high energy commodity prices.”  


 

Now, let’s look at June’s market prices for various environmental certificate schemes.

Market Update: Environmental Certificate Scheme Prices – STCs, LGCs, VEECs and ESCs for June 2022: 

Small-scale Technology Certificate (STCs) Price Updates: 

 As of writing, Small-scale Technology Certificates (STCs) are priced at $39.95. There has been no increase since the previous month. Compared to last year’s pricing, which was at $38.85, there is a $1.10 increase in prices.   

Large-scale Generation Certificate (LGCs) price updates: 

 Until the end of December 2021, Large-scale Generation Certificates (LGCs) were at $43.05. As of writing, LGC prices are at $49.25, $1.00 higher compared to the previous month. There has been a downward trend in prices last year. LGC prices reached $43.90 last October and dropped to $43.05 in December. 

Energy Efficiency Certificates (VEECs) price updates: 

 Trading for Energy Efficiency Certificates (VEECs) as of writing is at $79.00, which is $27.00 higher than the previous month’s trading price – a significant increase of 51.9% . For the last quarter of 2021, VEEC prices rose by 2.69% which is 80.22% higher compared to January 2021. 

Energy Saving Certificates (ESCs) price update: 

 The current trading prices for Energy Saving Certificates (ESCs) are at $31.50 which is $2.25 higher compared to the previous month’s price of $29.25. ESCs prices last year were between $30.00 and $35.00. It reached its peak at $39.70 in September 2021. Trading prices stabilised during the last quarter of 2021. 

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