Down, down, prices are down… but is it sustainable?

Following a comparatively mild Q1, electricity prices have fallen significantly in Q2. While a drop in price is expected as we move from peak demand conditions in Q1 to the shoulder Q2, the surprising element is the level to which prices have fallen. Average quarterly prices in Q2 2020 were between $33-43/MWh – a significant […]

VNI West RIT-T: another route-to-market for battery storage?

Over the last week, we have been reading through stakeholder submissions to the Victoria to New South Wales Interconnector West (VNI West) Regulatory Investment Test for Transmission (RIT-T) Project Specification Consultation Report (PSCR). For the most part, the submissions were in support of options 7 and 6 (Figure 1). However, there was one submission that […]

Calling an audible: Voltage control changing the playbook

Voltage instability concerns are becoming more relevant in the NEM as the system continues to incorporate higher levels of variable asynchronous generation in “electrically weak” areas of the network. Most recently, AEMO (on advice from TransGrid) implemented a new/revised system normal constraint equation in NSW for voltage collapse at Darlington Point on loss of the […]

A look under the hood: Q1 actuals vs BPC forecast

After last week’s Chart of the Week, we received interest from some readers on the topic of price variability beyond the average profiles we showed. As we mentioned last week, the average prices (and average profiles) are just one facet that can inform the commercial viability of assets going forward. However, when looking at average […]

System strength: From by-product to necessity

Last week, AEMO published a notice of fault level shortfall in North Queensland at the Ross node. This announcement represents the latest case of system strength issues in the National Electricity Market (NEM). It joins a growing list of areas where intervention (through direction or constraints) is required to ensure a minimum level of system […]

CleanCo – little ripples make big waves

Many would have noticed that CleanCo received their electricity retailer authorisation from the AER recently, signifying a key step to providing retail electricity services to customers. For those not familiar, under the National Electricity Retail Law, a retailer authorisation is needed prior to engaging in the retail sale of energy. Now, Cleanco can sell electricity […]

Distribution networks unDER the pump

Rooftop solar has grown rapidly over the last decade with numbers indicating that almost 10 GW has been installed across the NEM and AEMO’s projections indicate that there is still plenty more to come (~4 GW over the next decade). Effects of behind-the-meter (BTM) solar on market outcomes are well documented (including by us); so […]

You’re gonna need a bigger boat: NW VIC in the waves of change

The situation in north-west Victoria has been at the center of many discussions over the last fortnight, particularly in light of the West Murray Technical Forum held by AEMO. Back in September 2019, issues with system strength saw five solar farms have their output curtailed by up to 50%. At the time, voltage fluctuations were […]

It’s gettin’ hot in here: SA VoLL – a prelude to summer?

Summer is well and truly here with mercury readings this week showing warm temperatures across the NEM. South Australia in particular has seen maximum temperatures hovering around 40°C for the week. In this Chart of the Week, we take a look at NEM outcomes this week where moderately high demand, forecast Lack of Reserve (LOR) […]

Falling wholesale power prices, but for how long?

The Australian Energy Market Commission (AEMC) has recently published its Residential Electricity Price Trends report with the key finding being that household power prices are set to fall over the next three years. In this Chart of the Week we take a closer look at the wholesale power element of the retail bill. The AEMC […]