Lower energy prices? More than just hot air

The Victorian Government launched Australia’s first offshore wind targets as part of its transition towards a net-zero emission future.

According to the target, 9GW of offshore wind will be installed by 2040, nearly quadrupling the total wind capacity in VIC.

In this Chart of the week, we dive into the historical data of wind generation and wholesale energy prices and their correlations to provide insights into how offshore wind can impact VIC energy prices.

Make sure you are signed up to our Portal to review this content. It’s free, easy, and gives you instant access to our Charts of the week, other complimentary insights, and any subscription products or services you have with Cornwall Insight Australia.

Login in or sign up for free to keep reading.

Get in touch to learn more about our Benchmark power curve.

To keep reading, please log in to your account or sign up for free

Alternatively, please sign up to receive free market insight online and direct to your inbox

Related thinking

Regulation and policy

What’s the story…Oxera publishes findings on Ofgem’s regulatory performance

On 6 May, Ofgem published a report on the findings of an independent review undertaken by Oxera and commissioned by Ofgem's Board into the root causes of the recent supplier failure. In this 'Chart of the week', we look at how the report assesses the performance of Ofgem in meeting...

Commercial and market outlook

Australian gas prices have recently coupled with European spot. Will linkage persist post-2023?

Last year it was difficult to imagine that spot gas prices in Australia would hit unprecedented levels of more than $40-50/GJ, with AEMO capping the DWGM price at $40/GJ. By comparison, the DWGM only averaged $5.10/GJ last year. As was mentioned by Energy Market Intelligence Manager Mohsin Ali in the...

Low carbon generation

BSUoS charges: What goes up…

Balancing Service Use of System (BSUoS) charges have continued to be the dominant driver of Third-Party Charge increases in recent months, with costs remaining elevated since last autumn. In this 'Chart of the week', we present a view of past monthly BSUoS charges and expectations for future costs on a...

Commercial and market outlook

Market suspension poised to lift, but underlying drivers may stick around

It has been a chaotic few weeks on the east coast, culminating with the NEM being suspended on 15 June 2022, an outcome not seen in the modern version of the NEM. There has been much coverage of the key drivers of the crisis. It stems predominantly from a perfect...

Low carbon generation

Waiting On the [Wind] to Change: A look-back on wind load factors in 2021-22

In our work across the renewables space, wind output and its impact on Renewables Obligation Certificate (ROC) issue has featured frequently in discussion with colleagues and market participants alike over the course of Compliance Period (CP) 20 (2021-22). In this 'Chart of the week', we examines wind load factor trends...

Power and gas networks

Australian gas markets spike to unprecedented levels

Australia’s gas markets are in the middle of an unprecedented price spike. Current prices in the Victorian Declared Wholesale Gas Market (DWGM) have been tracking in the $20-40/GJ range since early May 2022, with prices hitting $50/GJ on 30 May. Prices in the other gas hubs of Sydney and Brisbane...

Low carbon generation

Electric Vehicles vs reactive power controllability of inverter-based resources

Electric Vehicles (EVs) are quickly plugging into electricity distribution systems (EDS) around the world. Their take up introduces new challenges due to their random and high energy consumption. One of the important challenges associated with integrating EVs into EDS is voltage imbalance due to EV uptake in residential areas. This...

Power and gas networks

Rate me

The transmission network in the National Electricity Market (NEM) is protected from overloads in times of events or during normal operation by nominating thermal ratings on primary elements (such as transmission lines and transformers), against which the real-time electricity flows should not be larger. This limitation is important in the...