We have published our pricing outlook for the fifth Emissions Reduction Fund auction.
Findings are drawn from our ERF Auction Simulation Tool, which simulates the operation of the ERF reverse auction process by estimating ACCU supply, behaviour and competition in order to simulate the forward auction ‘bid stack’ (bid price versus project volume).
Analysis models scenarios for the fifth ERF auction, considering participation and bid price settings. This enables proponents to better understand how auction prices may develop in a variety of plausible scenarios, supporting the formation of a ‘safe bidding range’ from 0-50 per cent of supply offered below the benchmark price. From this point, proponents may also understand the trade-offs of a higher risk bidding strategy.
RepuTex customers seeking to undertake tailored analysis are able to utilise RepuTex’s ERF Auction Simulation Tool to run specific auction simulations. Subscribers are also able to access our updated ERF Project Pipeline and ACCU Supply Pipeline posts.
Please contact RepuTex Client Services for further information, or login below to access this ERF Outlook.
The RepuTex Team
Australian Emissions Markets