ANZ 2022 Full Year Results
ANZ 2022 Full Year Results
PROGRESS TOWARDS OUR PORTFOLIO EMISSIONS TARGET PATHWAYS -
POWER GENERATION
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Financial challenges of a changing energy sector
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Wholesale electricity prices increased to record highs in parts of Australia earlier this year. Electricity companies routinely hedge the price of their future energy generation on the ASX
electricity futures market, to mitigate against price fluctuations
Due to these record high wholesale prices, companies using the electricity futures market faced unusually high margin calls on their existing hedge contracts - requiring them to post
cash collateral to margin accounts to cover these positions - including some existing ANZ customers
We have observed similar developments internationally this year. In the UK, the 'Energy Markets Financing Scheme" is designed to support viable energy firms with major operations in
the UK to deal with the unprecedented volatility triggered by Russia's invasion of Ukraine. These firms will be able to apply for government-backed guarantees to secure commercial
financing and meet large margin calls from energy price volatility
In August 2022, the Australian Energy Market Operator flagged² forecasted electricity reliability concerns over the next 10 years, with urgent investment in electricity generation,
storage and transmission required
Within this context, our challenge is to finance the new green energy infrastructure required to help achieve net-zero emissions, while ensuring existing providers - who are making
these investments - are supported while this new infrastructure is being built. These companies serve important roles in the supply and stability of the energy market while the broader
operating environment transitions in line with the Paris Agreement goals
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Energy Markets Financing Scheme opens today | Bank of England
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AEMO | Critical investment needed to manage reliability gaps
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