UPDATE: Behind the numbers – a closer look at ERF auction II

Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

The Clean Energy Regulator yesterday published its results for the second Emissions Reduction Fund (ERF) auction, with the Regulator contracting 45,451,010 million tonnes (Mt) of abatement at an average price of $12.25.

Thirty-four per cent of all registered proponents were successful at the second auction. Of the total 399 projects currently registered to participate in the ERF, 131 projects were successful in securing contracts (32 per cent) leaving 268 projects registered which did not participate, missed the cut-off date or failed to bid within the Regulator’s contracting range.

Below we discuss the key implications for the market.

The Results of the Second ERF Auction

  • The amount of abatement contracted was consistent with the previous auction, yet slightly smaller than market expectations. As we outlined in our September ERF Outlook, given the much higher level of registered projects, auction two had potential to be much larger than the first auction, despite expectations that the average abatement price would be lower as a result of increased competition.
  • While only one in three projects were successful, results indicate that larger projects and more sophisticated bidders dominated, with ‘winning bidders’ 
Restricted Access

To continue reading this post, register below.

Continue reading this article

To continue reading this free article, simply click “register now” to access our free insights & events.

Access is free, and instant! Sign up below.

Register Now

Sign up to receive our research alerts

Create a free account to access our free insights and event invitations, and receive our research alerts via email. Access is complimentary, and instant. Sign up below:

Sign up for regular insights

LATEST UPDATES

  • ALERT: Australian carbon offset price hits 4-year high, more price increases ahead?

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The price of Australian Carbon Credit Units (ACCUs) has continued its recent climb, reaching a […]

    Analyst Alerts, Research Insights | November 18th, 2019
  • INSIGHTS: How do weather patterns impact wind REZ correlations?

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    As the Australian renewable energy market reaches a turning point in its development cycle, the […]

    Research Insights | November 6th, 2019
  • OUTLOOK: Carbon windfall gains …or losses? Long-term carbon price outlook

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    The price of Australian Carbon Credit Units (ACCUs) has rebounded to a 5-month high of […]

    Research Insights | October 31st, 2019
  • UPDATE: Could LGCs deliver least cost external abatement for state policy design?

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    As states continue to work with industry towards achieving net zero GHG emissions targets, policymakers […]

  • WHITE PAPER: Modelling wind resource variability and spot market value in the NEM

    Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone

    With the rapid expansion of wind energy production in Australia, the accurate assessment of wind […]

    Insights, Research Insights | July 31st, 2019
  • Share on FacebookShare on Google+Tweet about this on TwitterShare on LinkedInEmail this to someone