Jan-22 Energy Market News

Electricity spot prices continued to fall well short of market expectations in October, driving down the Q4-23 forward price. The sentiment of the market outlook is mixed with some Regions strengthening and others softening.

Could this be the calm before the storm? Low demand and high renewable generation crushed electricity spot prices during October, but how long can it last? El Niño continues to threaten a hot and dry summer with AEMO's Summer Outlook painting the picture of a market on a knife's edge.

Our Monthly Report continues with Spot Market prices where a mild September and high VRE generation brought softening electricity prices, while gas spot prices have fallen to pre-2022 price levels due to soft demand, high production and storage levels, price caps and softer international prices.