True, we won't know for sure what kind of prices a Merchant agreement may get them but again, IFN provides a good yardstick. They are active in the spot market too (in addition to having power purchase agreements in place). They don't disclose the volumes of MWh sold on the open market but they do provide the prices:
So from this it appears they are getting about a +25% premium on spot market in SA and a +8% premium in NSW but then I don't know what percentage of energy sales are through spot market. The premiums for a merchant agreement sound great (and so far CCE have presented this as a selling point to obtain higher prices) but there is a degree of risk involved as prices fluctuate wildly and energy generated through solar farms has a narrow window that they can sell the energy to the grid (while the sun shines) compared to wind which blows anytime of day. Spot prices can actually go to zero or negative if there is excess supply and little demand. Higher spot prices occur in the early evenings and mornings due to demand so solar may not command the same premiums as IFN has been able to obtain.
This is all estimation and conjecture but thats the point isn't it...? Trying to get a picture of 'future CCE' to see if its worth buying 'present day CCE'
CCE Price at posting:
3.8¢ Sentiment: Hold Disclosure: Held
