AGL & Origin Expected to Gain from New Energy Paradigm
Source: The Age, 25 August 2016
Rising gas exports from Queensland along with increased penetration of renewable energy such as wind power will work to keep both electricity and gas prices high, Moody's Investors Service has warned, with the big energy utilities Origin Energy and AGL likely to benefit.
"We expect Australian wholesale power prices to remain high, reflecting tighter market conditions, higher fuel costs and the limited number of renewable projects due to come on stream in 2018/19," Moody's said. "The expected increased use of gas-fired production as the swing generator, at a time when gas prices are rising, will also support power prices."
Lower electricity generated by coal-fired power stations, for example, and rising reliance on intermittent power sources such as wind will keep wholesale power prices volatile, it warned.
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