The Federal Government is providing $845,000 in funding to initiate a world-first trading marketplace platform for renewable energy, as well as a suite of standard hedge contracts.
Renewable Energy Hub’s marketplace will assist energy buyers and sellers to manage their risk and provide stability to consumers. The Hub will develop multi-year financial products that factor in the time when wind and solar energy need to be backed up by flexible generation and storage (including gas, hydro and batteries).
In turn, the marketplace will also lower the risk and cost of the new generation projects by increasing the range of contracting and financing options available.
The Federal Government said that reducing the cost of technologies that provide storage and backup to the electricity sector is particularly important for Australian households and businesses.
The Federal Government has also invested $1.4 billion into Snowy 2.0 and MarinusLink, established a $1 billion Grid Reliability Fund and recently announced support terms for the first two UNGI projects.
These initiatives fall within the Government’s A Fair Deal on Energy policy and aim to contribute to meeting their $70 per MWh price target.
View the energy policy blueprint here.