14 Dec How business can avoid soaring energy prices – Westpac IQ
Today’s Westpac IQ features an article on “How business can avoid soaring energy prices”. Verdia CEO, Paul Peters, shares insights on how companies can generate their own electricity to hedge against price increases for years to come.
Energy price hikes and energy security issues now make the self-generation of power an appealing option for organisations large and small, a trend that’s bringing renewable energy to the forefront along with a new mix of smart financing solutions. Only a year ago Australia’s major corporations were comfortable with paying around AUD$70 or AUD$80 per megawatt hour (MWh) for their power, but then the market quickly changed.
Today, the biggest customers are paying AUD$120 per MWh (Graph 1) for power from the grid, while some are paying as much as AUD$350, reports Paul Peters, Chief Executive of energy efficiency company Verdia. (Westpac has partnered with Verdia on its Energy Efficiency Financing program, supported by an up to $200 million financing arrangement entered into with the Clean Energy Finance Corporation). And, as grid power prices have soared, the price of solar for a major corporate has fallen to as low as AUD$65 per MWh, which even when adding the network charges from the grid still presents a completely different equation.