• • Victoria Fast-Tracks Path to 2035 Renewable Target with Expanded Transmission Plan.
  • Powering Business Grant: Applications Now Open for SA Companies.
  • LGC market saw a significant downward trend this week.
  • VEEC spot market saw a slight but consistent upward trend.
  • ESC spot market saw price fluctuations throughout the week.
  • A quiet week for PRCs.
  • An upward trend and a relatively lively trend this week for ACCUs.
  • STC prices maintained at a high of $39.95 with clearing house in deficit, with a level of uncertainty from market participants for BSTCs.

Victoria Fast-Tracks Path to 2035 Renewable Target with Expanded Transmission Plan.

The Victorian government has released an amended Victorian Transmission Plan, expanding the area for renewable energy development by 200,000 hectares to a new total of 1.88 million hectares, now covering 7.9% of the state’s land. The number of distinct Renewable Energy Zones (REZs) has also been increased from seven to nine, with a new area added near Coleraine.

These changes come as Victoria continues to make significant progress, with renewables accounting for 42% of electricity generation in the last financial year – surpassing its legislated 40% target – and rooftop solar contributing 11%. With a current capacity of 7 GW from over 90 large-scale projects, the state is on track to meet its ambitious future targets of 65% renewable energy within the next five years and 95% by 2035. To achieve these goals, the government is fast-tracking projects through its Development Facilitation Program, which has invested $5 billion across 18 projects and created around 1,900 local jobs.

Powering Business Grant: Applications Now Open for SA Companies

The South Australian government has launched Round 3 of its $154 million Business Growth Fund with the $20 million Powering Business Grant, which provides grants of $2,500 to $75,000 to eligible businesses and not-for-profits with an Australia-wide grouped payroll of less than $18 million. The grants, which match business contributions dollar-for-dollar, are available under two streams: one for solar and battery projects and a second for energy efficiency upgrades such as lighting or refrigeration.

Applications for the grant program open on Monday, August 18, and will close on Friday, October 31, 2025, or when the total funding has been allocated. This initiative aims to help businesses reduce their energy costs, with a family-run business like Kytons Bakery already benefiting from a $36,834 grant in Round 2 that is expected to save them up to $29,000 annually on electricity.

Weekly Market Update | 18 – 22 August 2025.

Large-Scale Generation Certificates (LGCs)

The LGC spot market experienced a consistent downward trend this week, with prices falling from the week’s high of $13.65 on Monday. Prices softened slightly to $13.60 on Tuesday before a more significant drop on Wednesday, with multiple trades occurring between $13.40 and $13.15. This decline continued on Thursday with a large trade at $12.85, pushing prices below the $13 mark. The week closed with a flurry of high-volume trading on Friday, seeing prices continue to fall to a weekly low of $12.65.

The LGC forward market experienced a significant downward trend this week, mirroring the decline in the spot market. Trading began with CAL 25 at $13.45 and CAL 26 at $13.50, but by week’s end, prices had fallen to $13.00 and $12.90 respectively. This resulted in a decrease of approximately 3.3% for CAL 25 and 4.4% for CAL 26. The CAL 27 contract also saw a fluctuation around 2.4%, trading from $10.50 down to $10.25 and then back to $10.50 by week’s end.

Victorian Energy Efficiency Certificates (VEECs)

The VEEC spot market saw a slight but consistent upward trend this week, trading within a very tight range. On Monday and Tuesday, the market held steady between $95.60 and $95.80 with a number of small-to-moderate trades. The price began to climb higher on Wednesday, reaching $95.90, before a significant push on Thursday saw the price hit a new weekly high of $96.00. This new price point was solidified by a large trade of 50k certificates, and the price held firm through Friday. The market’s incremental upward movement reflects a marginal increase of approximately 0.31% over the course of the week.

The VEEC forward market saw key transactions on Thursday that highlighted a significant split in market sentiment. Near-term contracts for the Nov-25 to Jan-26 strip traded at $96.25 and Sep-25 at $96.00, while a Dec-27 contract secured at a discount of $93.00. The week closed with an upward push on near-term prices, with a Mar-26 strip trading at $96.50 on Friday.

Energy Saving Certificates (ESCs)

The ESC spot market saw price fluctuations throughout the week. The market opened on Monday with a 10k trade at $23.45, before a mid-week decrease to $23.35. Prices then rebounded to $23.50 on Wednesday with a 10k parcel. On Thursday, prices held firm with two 25k parcels trading at $23.45, before closing the week at $23.25 on Friday.

ESC creations have increased threefold since last week, with nearly 150,000 ESCs created. Commercial lighting activity accounted for the largest share of creations at 94%, while residential upgrades made up 6% and businesses accounted for the remaining 1% of this week’s creations.

Peak Reduction Certificates (PRCs)

PRC creation levels saw a 24% decrease since the previous week, with 92% of creations still coming from the BESS1 activity and the remainder from HVAC1. The suspension of BESS1 Activity has quietened the PRC market, as no trades were reported this week at the price high of $3.10. Given the lack of new activities announced for the near future to affect supply, prices can be expected to remain stable and nearing penalty rates.

Australian Carbon Credit Units (ACCUs)

The ACCU spot market experienced a strong and consistent upward trend this week, with prices for both generic and non-AD certificates climbing steadily. The week opened on Monday with generic ACCUs trading at $35.55, while Spot (No AD) contracts saw a range of trades from $35.40 to $35.90. Prices moved higher on Tuesday and Wednesday, with trades reaching $36.55. The upward momentum continued into Thursday, where prices remained firm before surging on Friday. This activity pushed the price for Spot (No AD) contracts to close the week at a high of $37.00.

The forward market saw minimal activity with only one trade reported this mid-week for a Dec-25 No AD at $37 for a 45k trade.

The ACCU options market saw similar activity, with a single trade for a generic Dec-25 call option to strike at $40.00 for a premium of $1.05.

The HIR ACCU market also saw an upward trend this week. It opened on Monday with a 15k parcel trading at $35.75. The price continued its ascent on Tuesday, with two 10k parcels clearing at $36.25 and $36.40. On Wednesday, the market saw two 15,000-certificate trades at $36.55 before the week closed with a 10,000-certificate parcel reaching a high of $37.00.

Small-Scale Technology Certificates (STCs)

STC prices maintained at $39.95 Monday through Thursday, while the Clearing House entered a 28k surplus early Friday morning for the first time since May. After being in a deficit exceeding 1 million to open the week, such high creation leading to the surplus has been driven primarily by the introduction of new Battery STCs (BSTCs) from the Cheaper Home Batteries Program (CHBP). While the ‘equivalent volume’ of battery STCs will be purchased in an ad hoc pattern by the government, a lack of structured purchasing windows means that the clearing house is likely to dip in and out of a deficit in the future.

A period in surplus means that smaller operators may face challenges in trading their created STCs, where agents routinely trade in large parcels on the open market. The government has announced it will purchase $10 million worth of STCs (approximately 250k certificates) and will be making frequent purchases over the next two weeks to account for the high influx of creations since 1 July.

Certificates spot prices & graphs available at Market Update >

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.