Generator Financial Performance in the SEM for the Financial Year 2022

Today we publish the latest Generator Financial Performance Report for those generators operating in the Single Electricity Market (SEM), for the 2022 calendar year (the most recent year for which information is available). 

The report provides financial performance information for generation companies with a combined ownership capacity of greater than or equal to 25MW that operate in the SEM.  Aggregated information on the financial performance of generators in the SEM, along with a breakdown by generation fuel source, is provided in the report.

The operating environment for global energy markets in 2022 was unusual, with the consequent impact on generator financial performance. This included higher gas prices, impacted by the Russian invasion of Ukraine, that led to high energy prices. The rising costs of gas-fired power generation drove up wholesale electricity prices.  Various governments responded to collect windfall profits made by generators in their own countries. 

The 2022 report shows that, overall, generators recorded lower gross and net margins compared to the previous year.  The net margin for wind and solar generators increased compared to the previous year.  

While the 2022 financial year reflects higher than normal revenues for generators, this needs to be understood in the context of several years of lower margins, and the expected long-term decrease in market revenues for conventional generators with the ongoing roll-out of low or zero marginal cost generation.  The continued roll-out of a diverse range of renewable technologies – robust to low-wind periods – combined with new efficient gas generation will support consumer interests in the medium to long term.