Renewables for industryProject Renewable Energy Hub Marketplace
This is the final Knowledge Sharing report on Renewable Energy Hub’s Wholesale Renewable Energy Firming Marketplace Demonstration Project.
Renewable Energy Hub (REH) has commenced an 18-month project (the “Project”) with support from ARENA. The project will work with market participants to develop specifications for a suite of innovative, standardised hedge contracts that are suited to both variable renewable energy (VRE) generators and new sources of clean dispatchable capacity (e.g. battery storage, pumped hydro storage and demand response), as well as the changing needs of energy retailers and large customers.
Though the energy transition is gaining momentum with increasing volumes of VRE assets coming onto the market, there is a lack of volume and diversity in hedge contracts to support forward markets for these asset classes. This lack of products reduces choice, impacting liquidity and in the long run increases the difficulty of new participants entering the market and participating in an effective and efficient manner.
In addition to developing new hedge contracts, the Project also involves the development of a digital platform that will enable prospective counterparties to access live market pricing, assess the value of the new hedge contracts, evaluate the risks of different contract positions under a range of scenarios and provide a point of market access for new and emerging clean energy providers.