The Australian Stock Exchange (ASX) has expanded its electricity derivatives offering, with the launch of its Morning and Evening Peak Electricity Futures Contracts for New South Wales, Queensland, South Australia and Victoria.
The increase in renewable energy, particularly solar-led generation, has led to a significant shift in the energy generation mix and demand profile in the Australian National Electricity Market (NEM). Specifically, the NEM has seen a significant increase in electricity demand during specific periods in the morning and evening across all regions on all days.
With this shift in how Australians consume energy, these new contracts offer market participants access to more targeted hedging and trading opportunities that cover the morning and evening peak usage periods.
Daniel Sinclair, General Manager, Product Management, ASX Markets said: “We are pleased to respond to our customers’ needs by delivering these new Peak Electricity contracts.
“With the changes in the demand for electricity, it’s essential our products align with these changes to help market participants trade and manage risk of the energy transition.
“This initiative advances ASX’s broader ambition to deliver an integrated derivative ecosystem supporting the energy transition across electricity, gas, carbon, and renewable markets.”
The contracts, which have now been rolled out across NSW, QLD, VIC and SA, are listed on a quarterly basis, extending up to four years.
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