Market Update | 2 August

• PRCs trade higher
• HWHP Road Map for Australia Launched
• AEMO’s Integrated System Plan sees households as linchpin on grid optimisation

PRCs trade higher.

The Peak demand Reduction Certificate (PRC) saw a further spike in trading this week with a total 1,800,400 certificates traded in the lead-up to the 1st of August removal of the PRC as eligible for the commercial heat pump activity. A significant 1,440,000 were reported for Monday, 1,290,000 on the spot to gain $0.06 bringing it to $2.26. 150k traded on Wednesday to achieve a short lived $2.30 before a further 200k in volume across Thursday and Friday softened the spot back to $2.25.

Forwards were also influenced by the spot lift with three 50k parcels put in for October, November and December at $2.40 and one 50k forward for this month at $2.34.

Hot Water Heat Pump Road Map unveiled.

The Victorian and New South Wales governments, in collaboration with the Energy Efficiency Council, have launched the Roadmap for Heat Pump Hot Water Systems in Australia. This initiative, funded by both states, aims to scale up the heat pump hot water while improving quality and addressing key concerns such as minimum energy-performance standards.
The roadmap 17 recommended actions include:

• revising standards
• end-of-life stewardship
• industry training
• product quality
• consumer protections
• minimum energy performance standards;
• and auditing of installations.

New South Wales Minister for Climate Change and Energy, Penny Sharpe, said “We want every Australian to have access to cleaner and cheaper energy and this roadmap will help us to reach that goal.”

Households seen as integral in grid optimisation.

In the latest of The Australian Energy Market Operator (AEMO)’s  25-year planning blueprints, known as the 2024 Integrated System Plan (ISP), the operator notes the staggering scale of investments likely to be made by households and other consumers over the coming decades, changing the fundamental nature of the grid.  The recent 2024 Integrated System Plan forecasts rooftop solar to grow from 21 GW to 86 GW by 2050, home batteries from 1 GW to 34 GW, and 97% of vehicles to be electric by 2050. AEMO stresses the importance of orchestrating these assets to reduce costs and enhance grid stability, potentially saving $4.1 billion.

This transition relies on consumer engagement, technology, financial incentives, and market arrangements to ensure lower costs and increased trust.

With the Peak Demand Reduction Scheme’s (PDRS) launch of the battery activities for BESS1 and BESS 2 for November 1st in NSW, the increased opportunities for households to integrate their efficient technology will only serve to strengthen the forecasts made by the ISP.

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.