Our industry trends and energy market reports for the period 1 October – 31 December 2023.
Contents
This edition of the report includes:
Insights on the gas and electricity market
Providing an overview of the National Electricity Market (NEM) for the quarter. It shows that the decrease in NEM spot electricity prices in December 2023 was influenced by mild weather and increased solar generation, while the domestic spot gas price remained stable.
Product explainer
Discussing all things Solar Power Purchase Agreements: What are they, and how can they provide flexibility for businesses to acquire solar.
Customer stories
Showcasing the latest customer stories, including City of Melbourne appointing Origin Zero to install three battery energy storage systems and Dreamworld installing the largest solar system at an Australian theme park.
Origin news and updates
An overview of Origin news and industry updates that may be insightful for your business, including:
- Origin Zero customers who purchase a solar system between 30 kW-100 kW can now access the UPowr digital platform, which will provide streamlined management of your system.
- Termination of the Scheme Implementation Deed by Origin.
Energy market updates and reports
- Oil Market Report for January 2024.
- Details of the Australian Government’s intention to introduce climate reporting obligations for large Australian businesses.
Our insights
Electricity and gas markets
Average NEM spot electricity price for Dec-23 quarter was $48/MWh: − $24/MWh lower than Sep-23 quarter, reflecting lower demand due to milder seasonal temperatures and higher solar generation − $43/MWh lower than Dec-22 quarter, driven by lower coal fuel costs following the introduction of coal price cap and increased renewable generation.
Average domestic spot gas price for Dec-23 quarter was $11/GJ, relatively flat on Sep-23 quarter and $7/GJ lower than Dec-22 quarter when prices were volatile post the unprecedented market conditions in Jun-22 quarter.
Product explainer
What is a solar power purchase agreement (PPA)?
A solar power purchase agreement enables businesses to install solar systems with Origin Zero without any upfront costs* and use the energy it generates at a predetermined, agreed-upon rate as part of a long-term financial arrangement. Origin Zero owns, operates, and maintains the system and sells back the electricity at an agreed rate (c/kWh).
Facilitating a solar PPA with Origin Zero can help fast-track your journey to reducing carbon emissions, allowing businesses to enjoy the benefits of solar energy without the upfront investment*. Discover how your business can harness the power of solar with solar PPA
*Some site based non-system costs may be incurred and will be quoted at the time of sale.
Customer stories
City of Melbourne
Origin is working with the City of Melbourne to deliver three battery energy storage systems, as part of its ambitious Power Melbourne project.
Power Melbourne is an exciting program. This first stage will see our team install three batteries with a combined capacity of 450 kW / 1MWh – equivalent to powering more than 70 homes each day.
It’s a great example of the tailored energy solutions that we can offer our large customers to help meet their unique needs. Origin Zero was selected to install and operate the batteries following a rigorous tender process run by the City of Melbourne. All three batteries are expected to be installed by mid-2024.
The batteries will charge during the day when there is a higher proportion of renewable energy in the grid. Stored energy will then be released back into the grid when it’s needed most – helping to support the transition to renewable energy.
Dreamworld
Dreamworld is now home to the largest solar system at an Australian theme park, after we completed the installation of 2,000 panels and 13 inverters.
Expected to cover an estimated 24% of Dreamworld’s annual energy usage and reduce the park’s carbon emissions by 21%, the 788-kW solar power system will power some of Dreamworld’s biggest attractions like The Giant Drop, Tower of Terror, and Steel Taipan, while putting energy back into the local grid. Dwayne Clark, General Manager of Commercial and Facilities at Ardent Leisure, said: “The longer-term reduction in energy costs far outweighed a costly upfront installation of the panels. Ardent Leisure has been doing its part to reduce its environmental footprint, and this installation marks a significant step to reduce carbon emissions at the theme park.”
Origin news and updates
Origin Zero solar customers to benefit from access to digital platform UPowr
Origin has over 15 years’ experience in solar sales and installations for homes and business across Australia, having installed more solar power capacity in Australia than any other solar retailer since the beginning of the local solar industry, as measured by SunWiz. To help support our capability to service the growing market for business solar systems, we have recently switched to an innovative new digital platform to manage commercial solar sales, design and engineering, installation and support for system sizes between 30 kW-100 kW.
The new platform – through UPowr – manages advanced system designs, shadings and savings forecasts, and in-field installation services. It will help us streamline the customer experience, support installers, and enable us to service more customers with tailored solar solutions. We’re currently live with UPowr in QLD, NSW, VIC, and SA, and will have WA coming online early 2024.
This collaboration is just another way we’re accelerating businesses towards net zero.
Termination of Scheme Implementation Deed
Origin Energy Limited (Origin) refers to its announcement on 4 December 2023 advising the Scheme Meeting results for the proposed acquisition of Origin involving a Brookfield-led consortium of investors (Brookfield) and EIG, by way of a Scheme of Arrangement (Scheme).
Read more here.
Energy market updates and reports
Electricity 2024 Analysis and forecast to 2026
The International Energy Agency’s sector report* offers a deep and comprehensive analysis of recent policies and market developments, and provides forecasts through 2026 for electricity demand, supply and CO2 emissions. This report, which has been published regularly since 2020, provides insight into the evolving generation mix. In addition, this year’s report features in-depth analysis on the drivers of recent declines in electricity demand in Europe; the data centre sector’s impact on electricity consumption; and recent developments in the global nuclear power sector.
Mandatory climate reporting
Earlier this year, the Australian Government confirmed its intention to introduce climate reporting obligations for large Australian businesses. Starting 1 July 2024, climate disclosures using the International Sustainability Standards Board (ISSB) climate standard will be mandatory in Annual reports.
Even those not mandated may disclose voluntarily to attract investors concerned about climate risk. Directors must ensure robust reporting systems, evaluate climate governance, competency, and necessary data.
Read more about these reporting mandates and how your business might be affected.
*IEA (2024), Electricity 2024, IEA, Paris https://www.iea.org/reports/electricity-2024, Licence: CC BY 4.0
