A close-up of solar panels on top of a house.

An ‘imperfect’ market dominated by ‘gentailers’ led to the collapse of Enova, according to a green energy supplier

How can soaring prices drive a “green energy” retailer out of a market struggling with a mix of renewable energy sources?

That’s a question some of Enova’s 13,000 customers might be asking after the establishment of Australia’s first community-owned energy retailer. placed in voluntary administration.

The move was announced yesterday, less than two weeks after the company was named the winner of the Finder AU Green Energy Retailer of the Year award for 2022.

The situation highlights an anomaly – even when small retailers do their best to buy energy from renewable sources, everything goes into the national grid.

Former chairman Alison Crook, who helped found the Byron Bay-based company in 2016, said retailers had to source from a market at “spot prices” every five minutes.

“Solar and wind [generators] are not allowed to bid, they just say how much they can put in,” she said.

“But they’re not allowed to bid because they’re considered unstable sources, so they can never fix the price.

“We happen to have reached winter – demand is higher, there has never been enough wind and solar power to fill the grid.

Ms Crook says ‘gentailers’ can benefit even when they have to buy electricity at higher prices.(ABC News: Chris Gillette)

“Imperfect” structure?

Ms Crook said the structure of the energy market allowed some companies to thrive when prices fell from $70-80 per megawatt-hour to $300-400.

#imperfect #market #dominated #gentailers #led #collapse #Enova #green #energy #supplier

Leave a Comment

Your email address will not be published. Required fields are marked *