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Australian Capital Territory consumers reap rewards of 100 pct renewables as wind and solar farms hand back windfall profits.

The ACT is the only region of Australia’s main grid spared from sharp
increases in electricity bills, and its consumers can thank the shift to
100 per cent renewables and the structure of their deals with wind and
solar farms.

The ACT government has written contracts with 11 wind and
solar farms to provide the equivalent amount of electricity consumed by
homes and businesses in the ACT each year. The nature of these deals –
called contracts for difference (CfDs) – means that if the wholesale market
trades below the agreed strike price, the government (and consumers), top
up the difference to the wind and solar farms.

But if the wholesale prices are above the strike price – as they have been by a big distance over the
last six months – then the wind and solar farms must return these windfall
gains to ACT consumers. And in the last quarter, as wholesale prices soared
to record highs – and an average of more than $300/MWh in NSW – the wind
and solar farms paid back a total of $58 million to electricity consumers
in the ACT, shielding them from any significant bill hikes.

Renew Economy 22nd Sept 2022

September 22, 2022 - Posted by Christina Macpherson | AUSTRALIA, politics, renewable