A transition period is a period between two transition periods

As Australia’s energy transition enters a new decade, a big part of the first quarter has focused on solutions for higher levels of renewable integration into the grid. Given the level of attention on these integration issues, perhaps now is the time to take stock of the last decade and gauge exactly where the NEM […]

Tis’ all about the Benjamins: foregone value of solar constraints

Summer is now well and truly behind us however grid stability remains a concern with no relief in sight for the five (5) solar farms across Victoria and NSW currently constrained to ~50% of their output. The constraint has been in place since mid-September last year and is expected to last until at least mid-2020 […]

From sunrise to sunset: the outlook for merchant solar

Utility-scale solar is certainly making an impression on the NEM with the recently released Quarterly Energy Dynamics from the Australian Energy Market Operator (AEMO) reporting that Q4 2019 saw the highest grid-solar output on record. In addition, Shell announced its first foray into the world of utility-scale solar with its plan to build a 120 […]

The fire between us: the day bushfires separated NSW & Victoria

This summer has already sprung many newsworthy events for the NEM and broader climate discussions with increased tightening of demand/ supply balance as bushfires continue to burn across all NEM regions. On Saturday 4 January, bushfires directly impacted the NEM, triggering a series of supply disruptions resulting in power prices in NSW hitting value of […]

SA is breaking records… but the ducks are everywhere

There has been a lot of commentary in recent weeks on minimum demand levels/ the ‘duck curve’ in South Australia (SA) with the state breaking its minimum demand record three times in a month. In this chart of the week, via a time-of-day analysis, we: analyse other regions of the NEM to determine if similar […]

Pumped storage: Silent winners in the energy transition so far?

Following on from last week’s Chart of the Week (CoTW) discussing the price-setter role renewable technologies are increasingly playing in the NEM, this week’s CoTW examines the impact these pricing dynamics are having on pumped storage operations across the market. To run, storage technologies – pumped hydro/ batteries – typically exploit arbitrage opportunity pockets in […]

Elephant in the room: the veiled role of gas markets/supply?

Historically, prior to the commencement of Queensland Liquified Natural Gas (LNG) exports in early 2015, gas markets in eastern Australia have been relatively stable. Conventional gas fields supplied large industrial users (LI), business/residential – mass market (MM) – load as well as gas-powered generators (GPG) at relatively low prices (~$3-4/GJ). The development of LNG facilities […]

Price cannibalisation in the NEM: dawn of new era?

Price outcomes in the NEM in recent weeks have left many wondering if the market is entering a new era of increased risk and volatility in prices even before 5-min settlement (5MS) kicks in. At certain settlement periods, prices across all eastern states averaged zero or less with some states sustaining very low prices across […]

Wind’s future in the Australian and GB energy markets

We recently published our latest insight paper – Wind in the Australian and Great British energy markets ­– which examines the outlook for wind in both the Australian and Great British (GB) markets and how it is being shaped by market design and infrastructure. The key findings of the report are: Both markets will see […]

Australian energy market rule change impacts

Lumi Adisa, Senior Consultant – Wholesale & Modelling at Cornwall Insight Australia, said ‘ 5-minute settlement, transmission loss factors, the wholesale demand response mechanism and reducing customer switching time are likely to have some of the highest impact on stakeholders.’