ASX announced Friday that it has launched new Morning and Evening Peak Electricity Futures Contracts for New South Wales, Queensland, South Australia and Victoria, expanding its electricity derivatives offering to better reflect changes in energy consumption.
ASX Announces Launch of Morning and Evening Peak Electricity Contracts
The move is said to come in response to shifting demand patterns in the Australian National Electricity Market (NEM), driven by the rapid rise in renewable energy, particularly solar.
According to ASX, the increased reliance on solar has resulted in heightened electricity demand during morning and evening periods across all regions.
“With the changes in the demand for electricity, it’s essential our products align with these changes to help market participants trade and manage risk of the energy transition,” said Daniel Sinclair, General Manager, Product Management, ASX Markets.
ASX said the new contracts will allow market participants to hedge and trade more precisely during the key periods of energy use. The derivatives are listed quarterly and extend up to four years.
“We are pleased to respond to our customers’ needs by delivering these new Peak Electricity contracts,” Sinclair added. “This initiative advances ASX’s broader ambition to deliver an integrated derivative ecosystem supporting the energy transition across electricity, gas, carbon, and renewable markets.”
