Market Update | 21 August 2026

• • NSW Commercial BESS bolstered by targets announcement
  • EEC releases Market Acceleration Plan for businesses
  • Certificate Market Prices & Commentary

IPART announces 70m PRC target for 2027/2028.

In welcome news, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) announced on Friday afternoon that program targets for 2027/2028 would be maintained in alignment with initial legislation.

This announcement represents an increase in program funding of approximately 1,700%, after the 2026/2027 targets were slashed to 0.5%, following the introduction of the Federal Government’s Cheaper Home Batteries Program.

Friday’s announcement is a clear market signal to industry anticipating the introduction of the new Commercial BESS activities at the start of next month and is expected to stimulate long-term investment in the program.

For those interested in calculating estimated certificate return and more, please click here for our BESS Incentives webpage.

Energy Efficiency Council’s Market Accelerated Plan released.

The Energy Efficiency Council (EEC) has released its latest body of work – Productive Future-ready Businesses: Market Acceleration Plan. Outlining a national strategy to accelerate commercial and industrial decarbonisation, the plan focuses on sectors like manufacturing, commercial property, and food processing.

With an aim to streamline investment in energy efficiency, electrification, and demand flexibility by fostering cross-industry collaboration and addressing systemic market barriers, the framework seeks to enhance business productivity, lower energy bills, and support Australia’s transition to a net-zero economy.

 

Key points in the plan include;

• • Target Sector Focus
    Priorities centre on commercial buildings and industrial facilities, such as manufacturing and food processing, to drive large-scale emissions and cost reductions.
  • Three-Pillar Approach
    Emphasises boosting energy productivity, implementing high-efficiency electrification, and activating demand-side flexibility to lower grid-wide system costs.
  • Practical Implementation
    Focuses on turning corporate net-zero commitments into actionable capital investments and measurable operational gains.

Ecovantage welcomes the opportunity to collaborate with EEC members, utilising state and federal certificate schemes to alleviate capital expenditure constraints and accelerate projects toward final investment decision.

Weekly Market Update | 10 – 14 August 2026

Large-Scale Generation Certificates (LGCs)

After a strong month, which saw consistent price recovery, LGCs lost ground this week across moderate liquidity. Midweek trading threatened to bring spot below the $7.00 level, trading as low as $7.25, before buying interest returned in Thursday’s session, which closed at $7.75.

The forwards suffered similar losses, as CAL27-CAL30 vintages all closed between $6.75-$7.75, a discount of $1.00-$1.25 on Monday’s openings.

Victorian Energy Efficiency Certificates (VEECs)

The VEEC market remained steady this week, largely trading sideways, before an uptick in demand had spot closing a step higher at $82.40.

Reported trading continues to lag, as the number of Accredited Persons (APs) capable of delivering minimum tradable parcel sizes dwindles. This is in spite of healthy monthly creation volumes, with August topping 375,000 VEECs. This provides a clear indicator of the fragmentation within the market, with VEECs increasingly spread amongst more APs.

Attention will firmly remain on the spot price as the 2026 calendar year draws to a close, with the impending introduction of incentive caps and increased co-payments for multi-split air conditioning units expected to soften creation volumes.

Energy Saving Certificates (ESCs)

ESCs were dormant this week, as a single 10k spot parcel was agreed at $29.75 on Monday.

There was, however, some notable speculative action on Thursday, with a 50k put option for February 2027 agreed at $27.00. With current ESC prices trading closer to the $30.00 level and ongoing supply issues caused by muted market activity, this option representing a punt on a decline in ESC prices in the new year drew the attention of traders.

Peak Reduction Certificates (PRCs)

The rally in PRC prices continued this week,  after Friday afternoon’s announcement that program targets for 2027/2028 would be maintained at 8.5%. PRC prices immediately spiked on Friday and this momentum was maintained at a slightly more subdued pace this week, consistently nudging higher to close at $3.35.

Forward trading was also lively with strips for January-May 2027 agreed at $3.30 on Wednesday, before Thursday’s session saw June-December 2027 agreed a step lower at $3.10. This discounted curve reflects an expectation held by some that the upcoming BESS activities may not be delivering material volumes until the latter half of next year.

Australian Carbon Credit Units (ACCUs)

ACCUs softened somewhat this week, as speculation regarding reforms to the Safeguard Mechanism gained traction on Thursday. Speculation that reductions to baselines would increase the pool of obligated facilities led to increased buying interest for Safeguard Mechanism Certificates (SMCs) and a corollary sell-off in ACCUs.

This resulted in spot ACCUs closing the week at an even $39.00, which represents a steady drop,  after threatening to breach the $40.00 level in recent weeks.

Small-Scale Technology Certificates (STCs)

At Ecovantage, we consistently analyse market activity, policy changes, consultation releases, and creation rates in conjunction with wider landscape activity. This allows us to keep our clients at the forefront of all relevant changes, and to leverage the advantage that this presents. Thank you for your continued support, and please reach out if you have any general or project-specific questions.