Hosted by Matthew van der Linden (Managing Director), David Evans (Director) and Jacob Mahoney (Account Manager), our most recent webinar walked through the basics of Flow Power’s wholesale power tools – and how to make the most of them for your business. Wholesale is much more than just spot price, these tools enable customers to get the most from the market.Key points
- The market has changed: Over the last 20 years, renewable sources have gained speed and users have been given more control over their electricity choices. Over the last year, the price of electricity has risen – but the spot price on the market is constantly moving, and users have been missing out on wholesale benefits particularly larger power users.
- Tailor your solution: No two businesses are the same. Ask yourself: What does my organisation use power for? When do we use power? What technologies do we already have installed? How flexible are our operations? From there, you can choose Flow Power’s Mastery or Freedom plans.
Power tools in action
The webinar then moved to the case study of Mildura vegetable farmer Jose, who uses 1GWh of power a year.
Jose used the Ceiling, running his farm as usual over the quarter and knowing the most he’d pay over this period of time. With the Ceiling, Jose saved much more than he would have on a fixed-rate contract as he was able to access the benefits of wholesale with the price certainty his business wanted.
But Jose wanted to save even more – so he installed the kWatch Intelligent Controller. This gave him even greater control over his spend, and the ability to earn money through demand response. Combined with the Ceiling, Jose has his business power under control.
Your questions answered.
Q: Who is eligible for the wholesale market?
A: All businesses that use over 160 MWh of power per year are eligible to access the wholesale market.
Q: What solutions would you recommend to protect your business from high energy costs this summer?
A: The most important thing is that the customer has a buying strategy. This could be a physical strategy where you actively respond to market signals. It could also be through automation on your site, enabled by the kWatch Intelligent Controller or our market monitoring service. Otherwise, you could use a financial strategy to manage costs through hedges, caps or our Ceiling. There are many different strategies that you can choose from – it depends on your business’s ability to manage usage, and the degree of price certainty you need.
Q: How can you earn money through demand response?
A: By participating in demand response, you can receive payments for turning off or reducing the power you use from the grid. We offer participation in demand response, supported by ARENA and the NSW government. If your business would like to participate in demand response as a new revenue stream, or simply to get benefits from the market, please call us today.
Q: How do you set up solar and/or wind PPAs?
A: To buy your power from a renewable plant through a Virtual Generation Agreement (VGA), you enter an agreement for a minimum period of 10 years. This strategy gives you access to fixed rates for long-term savings. The agreement buys you a fixed percentage of wind or solar output direct from the renewable generator in real-time via the National Electricity Market, calculated in 30-minute intervals under a ‘take or pay’ arrangement – so you’ll only pay for what you use. The generation is offset against your usage. When you use more than what is generated in an interval, Flow Power will source additional electricity from the wholesale market. When you use less, you have the option of selling the electricity to Flow Power at an agreed price or back to the wholesale market.
Q: For the case study were Joe’s costs just below the ceiling or just below an equivalent fixed price retailer contract?
A: We set a ceiling on the spot price which is 120% of the ASX futures every quarter.
Q: What is the difference between Ceiling 1.0 and 2.0? and what is the benefit?
A: Ceiling 1.0 was set at around 180% of the ASX Futures. The new version is much closer to fixed rate offers at 120% of the ASX Futures. That means you get more certainty in your pricing.
Ceiling 2.0 brings the roof down further on your price and rewards your business for accessing the low prices in the market. It also introduces the Price Efficiency Factor, Flow Power’s new way to help you understand how your use compares to the market. With summer coming, Ceiling 2.0 will give your business the protection you need.
Wholesale power tools give your business more options, put you in control, allow you to save up to 45% in electricity costs, and reduce risks – while increasing returns