Top 3 questions
‘The wholesale market’ or National Electricity Market (NEM) is a wholesale electricity exchange for the states and territories of Queensland, New South Wales, the Australian Capital Territory, Victoria, South Australia and Tasmania. The NEM began operation with New South Wales and Victoria in December 1998 .
The NEM is a spot market where supply and demand are matched in real time under the observation of an industry authority. Generators supply the market with electricity at regular intervals; retailers and wholesalers respond by submitting offers every five minutes, every day. Based on demand and cost-efficiency, The Australian Electricity Market Operator (AEMO) determines the volume of generators required to produce electricity. The AEMO then dispatches these generators into production.
A dispatch price is determined every five minutes, and six dispatch prices are averaged every half hour; this determines the spot price across the NEM. AEMO uses the spot price as the basis for the settlement of financial transactions – the price wholesalers or retailers pay – for energy traded in the market
A spot price is the wholesale market clearing price for a specific trading interval. It is based on a bid by generators or traders for the quantity of energy they will supply for a given price.
Since 2009, we’ve been a licensed electricity retailer, however, we aren’t like most electricity retailers. When our founder Matthew van der Linden setup the business, he wanted to give Australian businesses access to transparent flexible power that saved them money.
We achieve this by giving customers access to wholesale power. We help businesses in a wide range of industries across Australia, providing tailored packages and expert help to customers across the national energy market.
The down low on Renewable Corporate PPAs
A corporate renewable PPA is a deal that secures long-term, low-cost energy for an Australian business supporting renewable generation. The business agrees to purchase a portion of a renewable plant’s output for ten years or more at a low fixed cost.
Renewable corporate PPAs already exist internationally and are at the heart of many energy strategies with companies like Google and Amazon recognising the fact that they offer price security.
Flow Power is the first retailer to offer businesses access to this type of arrangement. Our corporate renewable PPAs provide a solution to rising energy prices.
Renewable generators like wind a solar produce power at a low cost – up to half of what users are currently paying in the wholesale market. Currently retailers are locking in these low and benefiting from the higher market prices.
By agreeing to buy power from the plant through a corporate PPA, the customer can make sure they pay the low cost of generation.
Corporate Renewable PPAs can suit businesses that use more than 1 GWh per year. That could include, a factory, farm or even a printing business.
For businesses that use less power, Flow Power has a range of other solutions to minimise costs.
The first step is to get in touch with Flow Power. We will look at your power use and see how you benefit from this tool.
We’re negotiating PPAs across the National Energy Market (NEM). That includes Victoria, NSW, Queensland, Tasmania and South Australia.