EnergyAustralia, one of the country's three largest companies, has announced a program to install solar cells and warehouses in various charity groups of $ 15 million to create "virtual power plants" and finance them through the sale of large renewable energy certificates to be used of its renewable energy targets.
It appears that EnergyAustralia has decided to accept the invitation of an industry regulator, a clean energy regulator to fail to meet its RET liabilities in 2018, and instead to spend cash on LGC's sales at higher market prices.
This is in the rules because taxable persons, such as large retailers, have a "two year" postponement period to deal with shortcomings in one calendar year.
Control comes because once the CER has expressed its disagreement with such methods and said it is against the spirit of the regime, it is now actively encouraging the vendor and others to take advantage of this practice.
Companies like ERM have made huge profits by choosing a "penalization" rather than a high price for LGC, and bet that when the LGC price drops as it is met, they can buy cheap LGCs in the future.
The CER demand helped halve the LGC price in the past six months – from more than $ 80 / MWh in June to $ 34 / MWh in January. EnergyAustralia claims that 700,000 LGCs that are otherwise destined to meet their quota are sold but do not say what the price.
On average, for example, $ 50 / MWh, which would earn $ 35 million. In two years, when they will have to buy them back, the price is likely to be significantly lower.
EnergyAustralia will not be the only one. The Snowy Hydro government reseller seems to be doing the same thing as AGL and others.
Where EnergyAustralia tried to be different, it is promising to use some of the expected profits by directing money to charity organizations and helping them cut accounts by half by funding the installation of solar and battery storage roofs.
"The company will use net proceeds from sales (LGC) to conduct energy audits of participating charities to find out where and how they can use energy more efficiently and more sustainably," he said in his statement.
"Based on the audit findings, EnergyAustralia installs batteries, solar photovoltaic systems and intelligent energy management systems, and provides advice on upgrading appliances."
Andrew Perry, director of the NextGen Company, says that bills can be reduced by up to 50 percent, releasing more funds they spend on "doing what they do best, helping vulnerable people in need."
"In the next few years, we will take care of any LGC deficiency, which means we continue to fulfill our full responsibility for supporting renewable energy sources within RETs and at the same time create money that can help our communities and all our customers depend on their circumstances, to transform clean energy, "Perry said in his statement.
"This initiative will also provide a more flexible demand response to help ensure that the electricity market can deliver reliable and affordable electricity to all consumers." The program will add more than 50MW of the demand response portfolio that EnergyAustralia has already built to help the network meet the cutting edge requirements. "
PowerAustralia Power for Good will begin with an initial commitment of $ 5 million in the first year, with the program being donated at a maximum of $ 15 million over three years.
Berry Street, Victoria's largest independent child and family service provider and one of EnergyAustralia's charity partners through its work program, is trying to become a participant in the program.
Perry said that as the program expanded and other charities joined, it could eventually create one of Australia's largest "virtual power plants," a system in which potentially thousands of households or commercial solar and battery systems are linked and controlled remotely.