This second part of our Annual Market Report focuses on the Financial aspects of the market by addressing the performance of financial swap and cap derivatives, before assessing environmental certificates. The year of 2021 was a big price mover on all fronts.
Welcome to your second part of our Annual Market Report with this part focusing on the Financial aspects of the market. Our first part reporting on Spot Prices has been published and the final part focusing on Generation and Demand is in development.
In this report we provide insights and analyses of:
- Forward Price journeys, historical trading ranges and interregional trading
- Analysis of the Forward Price Premium to the spot market (if any), and the $300/MWh cap payouts (if any)
- LGC spot and forward prices and the number of LGCs generated by old hydro power stations
- Small-scale Technology Certificates (STCs) prices and cost to consumers
- State-based environmental certificates prices and costs to consumers in NSW and VIC
- A summary of the environmental costs facing consumers and how these costs have changed over time
1.0 Forward Prices
We begin our report by reporting on Forward Prices in terms of: