With another upsurge in interest in the effect of Hazelwood closure on price outcomes in the NEM, we’ve invested some time to provide these thoughts.
Ominous signs for spot price outcomes through Q2 2016 in Victoria, as hedge contract prices climb prior to the imminent closure of Hazelwood.
Engie’s announced closure of Hazelwood reflected as a big step change reduction in available capacity in Victoria at the end of March 2017.
In reality, it’s impossible to “know” what the price outcomes would be when Hazelwood closes. Here’s some reasons why…