Snowy Hydro Limited is the leading provider of peak, renewable electricity and innovative risk management financial hedge products to the National Electricity Market (NEM).
Through its hydro, gas and diesel generation assets, Snowy Hydro generates the power that meets the everyday peak power demands of electricity retailers and end-use customers in the NEM including the more than one million customers we serve through our 100 per cent Australian owned retail companies - Red Energy and Lumo Energy.
The NEM has been operating since 1998 and today supplies electricity to more than nine 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 $7.7 billion of energy was traded through the NEM in 2014-15.
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.
For more information on the National Electricity Market, visit AEMO’s website at www.aemo.com.au