Renewables for industryProject Renewable Energy Hub Marketplace
The Renewable Energy Hub project aims to develop a suite of innovative, standardised hedge contracts that are suited to both variable renewable energy 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.
Renewable Energy Hub has commenced an 18-month project with support from the Australian Renewable Energy Agency (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.
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 (the Project).
The purpose of this first ‘lessons learned’ report is to outline the key insights generated from the first stages of the Project and to provide greater context on the objectives and proposed outcomes of the Project.
Over time, we expect that lessons learned reports, to be released each quarter, will reflect insights from the digital platform such as trade volumes and pricing for the products developed, whilst also providing reflections on current energy market trends as they relate to the Project. Additionally, it is expected that updates relating to the online trading platform (e.g. usability, functionality and uptake) will be shared with the industry.
In this first lesson learned report, the following elements will be covered:
- An overview of key NEM energy market insights that are driving both new product development in applicable renewable energy-based hedge contracts, as well as analytics features that will be available in the ‘Hub’;
- Insights into the current suite of products that are being traded or under development by Renewable Energy Hub. It will highlight the key questions driving the development of these new contract products and the role that the Market Advisory Group (MAG) has in guiding future iteration of the products;
- An overview of the software development stage of the ‘Hub’ and how it has progressed; and
- A view on the external energy industry landscape and how that might influence the development roadmap for the Renewable Energy Hub.
Renewable Energy Hub is delighted by the level of industry support exhibited for the project to date and looks forward to further progressing this ARENA-funded project.