Snowy Hydro Limited is the leading provider of peak, renewable electricity and innovative risk management financial hedge products to the National Electricity Market (NEM).
Snowy Hydro Limited, through its 33 hydro and 8 gas fired units, generates the power that meets the everyday peak power demands of electricity retailers and end-use customers in the NEM. We provide energy to your electricity retailer and make it possible for them to give you the power you want – when you need it most, peak, renewable, energy from Snowy Hydro.
The NEM commenced operation on 13 December 1998, as part of the process of deregulation of the Australian Power Industry. A key objective of the NEM is to promote competition at each stage of the electricity production and supply chain.
Today, the NEM supplies electricity to over 9.2 million Australian customers on an interconnected national grid that runs through Queensland, New South Wales, the Australian Capital Territory, South Australia, Victoria and Tasmania. Approximately $6 billion of energy is traded through the NEM each year.
The Australian Energy Market Operator (AEMO) operates a wholesale spot market for trading electricity between generators and electricity retailers in the NEM. This means that all the electricity output from generators is pooled and then scheduled to meet electricity demand.
In order to manage spot market price volatility, buyers and sellers of electricity in the NEM enter into financial hedge contracts. These hedge contracts help to manage participants’ exposure to price risk in the market.
To view the current spot market prices click here.
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