Alex White in trading room

Trading in Australia's dynamic energy market

Generating and trading electricity in the National Electricity Market (NEM) is CS Energy’s core business.

The NEM is a wholesale electricity market where electricity supply and demand is matched instantaneously in real time.

Delivering energy today

As Head of Trading at CS Energy, David Warman manages CS Energy’s presence in the NEM, where we have a trading portfolio of 4,035 megawatts and operate in both the spot and contract markets.

“In the spot market, CS Energy sells electricity and retailers buy it to on-sell to consumers,” David said. “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.”

“CS Energy also offers a range of ancillary services to help keep the frequency, supply, and quality of electricity stable.”

Because of the significant price volatility in the spot market, generators and retailers often use hedging contracts that lock in a firm price for electricity at a given time in the future.

Powering your tomorrow

Australia’s energy landscape is changing rapidly in response to new technologies and the transition to greater use of renewable energy.

CS Energy has a strategy in place to ensure that the business remains competitive in the coming decade.

“The National Electricity Market is complex and it’s evolving,” David said. “Competition is expected to increase and the most value will be captured by participants who have superior market insights and sophisticated systems and capabilities.

“Our strategy is built around maximising the life of our existing assets while also finding new sources of earnings to diversify our business.  For example, expanding our trading activities into new markets and commodities."