Arcadia solves energy
market issues and challenges

James Gillard, General Manager, Fuels and Power Trading
james@arcadiaenergy.com.au

The problem for Tasmanian Government-owned Aurora Energy was how to protect their margins in energy markets that are more complex and volatile than ever before. Prices in the current spot market can range from the Market Price Cap of $14,200/MWh to the Market Floor Price of -1,000/MWh. That’s some seesaw. As the State’s largest electricity retailer, Aurora Energy had a lot on the line and needed a solution. Arcadia Energy had the answer.

As a registered market participant in the Australian National Electricity Market*, we leveraged our industry insight and trading expertise to develop and execute a diversified risk management strategy to help Aurora manage their wholesale power purchasing, financial hedging contracts, and exposure to market price volatility.

In constantly shifting markets, decades of dealing with different scenarios means we’re sure-footed when it comes to transfer pricing, bidding, contracting, valuation and settlements. We keep our finger on the live market pulse. Our options, swaps, caps and load flex hedge and credit products are backed by and Australian Financial Services Licence and tailored to meet your pricing needs, volumes and market bias and risk appetite while achieving the best possible cost outcomes.

For Aurora Energy, we’re providing certainty of cash flow and building their bottom line. For us, It’s another case of energy solved.

*Arcadia Energy Trading Pty Ltd (ACN  121803638) holds AFSL 309188 which allows it to provide financial services to wholesale clients as defined by the Corporations Act 2001 s761G.

“Aurora Energy required a risk and commercial partner with significant experience in the Australian electricity retail market. Arcadia Energy’s intimate understanding of the wholesale energy market and half hourly pricing in a Retail context has been invaluable for Aurora Energy in developing our business. The Arcadia Energy team bring a committed, inclusive, and ethical approach to assisting our business and has become an important enabler in the delivery of our competitive retail strategy.”
Rebecca Kardos, CEO/Managing Director

James Gillard, General Manager, Fuels and Power Trading
james@arcadiaenergy.com.au

The problem for Newcrest Mining was sourcing bulk fuel for its Lihir Gold Mine on Aniolam Island in the New Ireland Province of Papua New Guinea, 900km north-east of Port Moresby. Oil majors out of Malaysia could fill the order but emptied pockets with excessive delivery costs. For sea freight heavyweights, Lihir’s order book was too small and location too remote. As Australia’s largest gold producer, Newcrest needed a solution it could bank on. Arcadia Energy had the answer.

We secured the right ships at the right price for the long term. We use our dedicated 12,000 tonne tankers to ship fuel from Malaysia to the mine twice a month. In addition to managing all aspects of fuel specification, quality and ordering, Arcadia is solely responsible for logistics, handling all shipping operations including nominations, inspection, and demurrage. Newcrest is free to concentrate on core activities with confidence, ensuring production never grinds to a halt.

For Newcrest, we’re fuelling better mine performance and peace of mind. For us, It’s another case of energy solved.

“Not only is Arcadia a highly reliable fuel supplier to Newcrest, but they add real value to our business through their co-operative approach. Arcadia have a thorough understanding of our operations, and are keenly aware of the impact fuel supply has upon us.”
Mark Landis, Group Category Manager – Energy

James Gillard, General Manager, Fuels and Power Trading
james@arcadiaenergy.com.au

The problem for Hydro Tas was refueling their vehicle fleet at Gordon Power Station near Tullah, 190km southwest of Launceston. The Station’s workforce travelled long distances over icy, wet roads just to fill up. It was inconvenient not to mention unsafe. As Australia’s largest clean energy generator, Hydro Tas needed a fuel solution that held water. Arcadia Energy had the answer.

We installed an in-situ servo, taking care of all site work, regulatory compliance and freight logistics. Two relocatable fuel container tanks are now on site and equipped with pump dispensers and usage meters which provide top up alerts to ensure Hydro Tas is never in neutral. The tanks are safe, heavy duty, and fully compliant for the harshest conditions and can accommodate multiple fuel grades (E10, PULP98, PULP 95, Diesel).

For Hydro Tas, we’re powering greater performance and safety. For us, It’s another case of energy solved.

Anthony Rohan, General Manager, Generation and Renewables Trading
ant@arcadiaenergy.com.au

The problem for Vena Energy was how to reduce the risk exposure of its proposed $200 million solar power plant at Tailem Bend, South Australia. Any issues with registration, settlement and capability services could translate to costly delays and seven figure losses. As Asia’s largest renewable energy independent power producer, Vena needed a solution that ensured the sun didn’t set on its 127MW project. Arcadia Energy had the answer.

With more than 20 years’ electricity market experience, Arcadia leveraged its capability to provide multifunctional Agency Services to Vena Energy.

We are geared to support energy projects throughout their entire life cycle. Our kitbag is not only chockers with expertise but an Austraclear account, Australian Financial Services Licence, AFMA Membership and a REC Registry Account as well. We have the ability to stand principal to electricity derivatives, both vanilla and complex structures and also Renewable Product contracts.

We provide the know-how that renewable energy developers need to navigate complex regulatory environments, submit permit applications, and obtain approvals. We have supported over 2,500 megawatts of clean power across wind, solar, hydro, and biomass projects. We’ve recently added the finishing touches to our first hydro-electric power generator which will supply up to 80,000 MWh per annum to Indonesia’s state owned electricity supplier, PLN.

Whatever your power project and whatever stage you are at in its life cycle development – from pre-design feasibility, through environmental assessment, to operational monitoring – Arcadia has its hand raised for the tough jobs.

For Vena, we’re smoothing the path to project success. For us, It’s another case of energy solved.

James Gillard, General Manager, Fuels and Power Trading
james@arcadiaenergy.com.au

The problem for Indonesia’s state-owned electricity supplier, PT PLN was meeting rising power demand in North Sumatra. Over the past 20 years, the country’s fourth most populous province has experienced recurring blackouts in most parts of the region, disrupting business and social activities. PLN needed new generation to ensure the province wasn’t left in the dark. Arcadia Energy answered the call.

We built a hydro power plant. Our 12MW Sei Wampu 1 project near North Sumatra’s capital, Medan City, supplies around 80,000MWh per annum of reliable, affordable and cleaner energy to the local power grid. We meticulously coordinated every aspect of the project from planning and development to sourcing mechanical and electrical equipment, and taking responsibility for engineering, procurement and construction. The site was remote, the landscape unforgiving, language a barrier, and high quality labour and materials in short supply but we got the job done.

More than 20 years in the energy trade meant we were also able to negotiate and secure power purchase agreements with government and private enterprise.

For Indonesia, we’re powering Indonesia progress with cleaner energy. For us, It’s another case of energy solved.