Market Update | 3 May

• National Energy Performance Strategy Overview
  Four Peak Demand Days for NSW Released by IPART
• NGER Scheme Updates Consultation Breakdown

In an exceptionally active week for our certificate markets, VEECs hit a record high of $100.00 in the spot on Thursday while PRCs saw near-record activity with over 2.2 million trading. LGCs maintained high liquidity through spot through to Cal 27, and the primary volumes closed in ACCU spot markets at lower levels. The STC clearing house remains in deficit, planting the spot firmly at $39.90. ESCs continued to soften amid continued high creation.

National Energy Performance Strategy 

In early April the Department of Climate Change, Energy, the Environment and Water (DCCEEW) released Australia’s National Energy Performance Strategy, known as NEPS. The NEPS includes a three-pillar approach to managing energy demand:

1. Energy Efficiency
2. Demand Flexibility
3. Electrification and fuel switching

A total of $15.2 million will be invested by the Australian Government between now and 2026 to ‘develop, evolve and deliver the strategy’.

IPART Releases Four Peak Demand Days for the PDRS 2023-24 Compliance Period

On the 15th of April IPART released the four peak demand days for the most recent PDRS compliance period. The peak demand days are released each year, and inform the liability of each obliged retailer.

NGER Scheme Updates Consultation

DCCEEW is undertaking public consultation on proposed updates to the NGER Scheme, closing on Friday May 24th. There are six primary proposals within the document, outlined below:

1. Method 1 is the default method, where estimation procedures are used under the National Greenhouse Accounts emissions factors for facilities to determine their emissions. Proposal one is where Method 1 is phased out for fugitive emissions from open-cut coal mines from 1 July 2025 for Safeguard Facilities producing over 10 million tonnes of coal in 2022-23, and for all other Safeguard Facilities from 1 July 2026.
2. Methods used by Safeguard Facilities to estimate fugitive methane emissions from coal mining, and oil and gas activities, to be publicly published.
3. Allowing market-based estimates of Scope 1 emissions to be used for the combustion of drop-in renewable liquid fuels.
4. Adding state and territory residual mix factors to the market-based method for Scope 2 emissions estimates.
5. Updates to the estimate methods for natural gas fugitive emissions, carbon capture and storage and waste emissions.
6. Additional minor amendments to improve clarity.

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 -simply replying to this email – if you have any general or project-specific questions.