Here we’ll explain how we calculated the numbers because transparency is what we do best. If you have more questions, just call us.

The story

As an electricity retailer, Flow Power talks to businesses across the National Electricity Market about their power. Flow Power analysed the energy spend of 670 businesses, which represent ~4 TWh of annual energy use. They range from medium to large businesses and they are currently buying fixed price power.

The numbers

Those 670 businesses have the power to drive investment in 1845 MW of renewable generation by signing up to Flow Power’s Corporate renewable PPAs – Virtual Generation Agreements.

  • Because renewable generators are intermittent, we took a capacity factor into account. For that we used the average of two renewable projects already contracted to Flow Power – Ararat Wind Farm and Kiamal Solar Farm. If you look at other renewable energy projects the number will change somewhat.
  • Flow Power’s Corporate Renewable PPA ensures the majority (~70%) of a customer’s consumption is accounted for by renewable power.


If the 670 businesses had purchased wholesale spot power, rather than inflexible fixed price contracts last financial year, they would have collectively saved up to $97 million.

  • For the benchmark fixed rate prices, we went to the ASX Energy Futures market and used the publicly available actual prices for the 2018 Financial year
  • The Wholesales spot market prices came straight from AEMO and we used an average of the time weighted prices across the states.
  • All retail mark ups, pass-through network and market charges are excluded


Add in renewables and that number grows to $195 million

  • Assuming all the businesses signed up to Flow Power’s renewable deals, this would have been the cost reduction for the financial year.
  • We’ve taken the majority of power from renewables and the remainder from the wholesale sport market. Any unused generation from the renewable PPA is credited at the spot price and offset against the fixed PPA rate.
  • But there’s more – LGCs through a VGA come at a discount to the market as well


At the start of 2018, demand response could have cut South Australia’s power prices by 2.7c/kWh

  • When medium and large energy users power down in response to higher market prices, they bring down the overall demand.
  • SA experienced a volatile first quarter this year. That pushed up fixed rate contract prices. Without the volatility, prices would have been lower.

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