News

Energy Efficiency Snapshots (April 2015)

07 May 2015

Highlights from this month's reports by Green Energy Markets:

ESCs

  • 2,680,287 were submitted for 2014 surrender by liable parties by the end of April. This is higher than the anticipated 2.6 million, even including carry forward from 2013. The 2015 target has been revised to 2.7 million. 134,545 certificates were created in April. The majority of these were for commercial lighting (81 per cent).
  • The NSW Government released the NSW ESS Review Report package for public consultation. The preferred options of the NSW government are:
    • extend the scheme to include gas from 2016
    • to increase the target from 5 per cent to 6.5 per cent for 2016 and then further increase it to 7.5 per cent for 2017 and 8 per cent for 2018, once gas has bee included in the scheme
    • extend the termination of the scheme from 2020 to 2025
    • increase the tax effective penalty from $37 to $42
  • The ESC price opened April at $17.40. It dropped to $17.15 on 7 April and then it gradually increased through the rest of the month to close at $18.00. Since then, it has rallied further to reach $18.50 on 5 May. This is the highest the price has been since August 2013.

VEECS

  • Liable parties surrendered a total of 5,789,647 VEECs for their 2014 compliance by 30 April. Even when we take into account the under surrenders of the past two years, this is still significantly more than the legislated 5.4 million target. We would expect some level of un‐surrendering at the end of June when the ESC complete their reconciliation and a lowering of the RG and RE factors for 2015 compliance which would result in an effectively lower target for 2015.
  • If VEEC creation continues to average 110,724 certificates per week, then the 2015 target of 5.4 million registered certificates will be met by the end of December.
  • The price opened April at $18.35. It gradually increased through the month to a high of $19.60 on 28 April and subsequently dropped back down to close the month at $18.20. It has since rallied again to $18.75 on 4 May.

 

The VEEC and ESC Snapshots are available as part of Green Energy Markets' Energy Efficiency subscription.  For more information or to susbcribe please contact Emily on 03 9805 0729 or email us.

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