And why long-term investment will remain uncertain until a more robust and integrated climate and energy policy framework is developed.
Despite Covid, the LGC market has seen the same issues play out as those that occurred in 2019, while rooftop solar boom has removed fears of a shortfall in STCs.
Projected LGC surplus soars from 2021 onward, and only a change of policy or an eye-watering increase in voluntary demand will prevent that outcome from playing out.
Australia has already overshot 2020 RET by nearly 1GW since accumulating enough completed and committed projects to meet the goal in late August.
Updated: Neoen’s 150MW Coleambally solar farm in NSW is setting new records – not just in size and output, but also speed of installation and connection.
With a Wednesday deadline, things are getting tight for power companies to purchase and surrender enough LGCs to meet their liability. Has ERM got its act together?
LGC prices ended April at $78.25, a 12 month low and a drop of 8% on March’s close.
Impact of decision of some liable parties to pay penalty rather than meet RET obligation felt in February – although the extent of this was lost in subsequent political volatility. Meanwhile, project commitments continue to flow.
Clean Energy Regulator warns electricity retailers intentional failure to meet 2016 RET obligations will result in investigation, audit, embarrassment.
Price rise in LGC market halted in July – less a result of the renewed anti-renewables campaign and more reflection of fact that spot market sitting within $7 of the scheme’s cap.