Generating and selling electricity in the National Electricity Market (NEM) is CS Energy’s core business.
CS Energy operates in the spot and contract markets in the NEM, where we have a trading portfolio of 3,535 megawatts consisting of generation and trading rights.
Our trading portfolio
We own and operate the Callide B and Kogan Creek power stations, and a have a 50 percent interest in the Callide C Power Station. We’re a party to an Interconnection and Power Pooling Agreement (IPPA), which enables us to trade the surplus output of Gladstone Power Station, after it has met the daily requirements of the Boyne Aluminium Smelter.
And we have an offtake agreement to purchase the renewable energy from the soon to be completed Kennedy Energy Park.
Our role in the NEM
The NEM is a wholesale electricity market in which electricity supply and demand is matched instantaneously in real time.
In the spot market, CS Energy sells electricity and retailers buy it to on-sell to consumers. Prices fluctuate in response to supply and demand at any point in time. It’s a dynamic, highly competitive market with more than 100 generators and retailers.
To manage exposure to price volatility in the spot market, generators and retailers often use financial derivatives to manage lock in a firm price for electricity at a given time in the future.
In the contract market, CS Energy also provides tailored energy solutions to large commercial and industrial users such as state government departments and agencies.
CS Energy also offers a range of ancillary services to help keep the frequency, supply, and quality of electricity within the NEM's performance standards.
Two of the major services we offer are Frequency Control Ancillary Services (FCAS) and System Restart Ancillary Services (SRAS).
Our obligation under the FCAS market is to help keep electricity frequency stable, supplying more power or easing supply as required to correct any imbalances.
Under the SRAS market we have agreements in place to respond quickly in the event of a blackout or supply disruption that requires a complete system restart – so electricity supply can be restored as quickly as possible.
These services underpin the security and reliability of electricity supply for Australians.
Visit AEMO’s website for a complete guide to ancillary services.