Energy is neither created nor destroyed; it just transitions

In April, the NSW government opened consultations on “specific urgent and mechanical policy details” on regulations needed to implement its Electricity Infrastructure Roadmap released late last year. The Roadmap aims to unlock 12GW of new renewable energy capacity from selected Renewable Energy Zones (REZs) with an additional 2GW in storage by 2030. In our Chart […]

Supply creates its own demand: negative pricing in the NEM

In the National Electricity Market (NEM), generators offer the prices at which they are willing to supply electricity to the system operator – the Australian Energy Market Operator (AEMO) – who in turn matches these offers with demand on a least-cost merit order basis. The offer price of the last MW of supply that matches […]

Winds of change: Victoria and its unique afternoon ‘belly bump’

To say the transition is well and truly underway in the Australian NEM is not exactly news. In the last year alone, renewables have delivered record shares in generation mix across the NEM. Whilst solar is the technology often in the news given its impact on both operational demand, mid-day prices and grid supply, wind […]

December 2020: when Santa brought low temperatures & prices

With just about half of summer left to go, many keen NEM observers would agree that it has been a pretty mild journey so far; at least as far as the NEM is concerned. But how mild are we talking here? In this ‘Chart of the week’, via a time-of-day analysis, we examine demand and […]

Push it to the limit: the evolution of MPC & market tightness

With summer officially starting last Tuesday, the National Electricity Market (NEM) is about to go through the season that typically has the highest demand. Market tightness usually seen during summer sometimes pushes power prices to their maximum level – the Market Price Cap (MPC) – currently set at $15,000/MWh. In this Chart of the Week, […]

All gas demands are equal; but some are more equal than others

One of the key objectives of the federal government’s proposal for a ‘gas-led recovery’ – besides building a 250MW gas-powered generator (GPG) – is reducing gas prices through increased supply to domestic consumers. The proposal highlights the need to invest in domestic gas exploration and transportation, as well as create an ‘Australian gas hub’ in […]

SA ducks in the news (again); what about the QLD duck?

South Australia is back in the news again with the state achieving a world-first on Sunday, October 11, 2020. According to a recent update from the Australian Energy Market Operator (AEMO), between 12-1PM, solar power provided 100% of South Australia’s energy demand – a first in Australia and for any major jurisdiction globally. In this […]

To the left, to the left; is Liddell irreplaceable through the day?

In Issue 52, considering the recent announcement from the federal government to build a 250MW (previously 1GW) gas-fired plant in New South Wales (NSW), we investigated price volatility trends in the state and the opportunities for storage to fill the impending energy gap when Liddell retires in 2023. In this chart of the week, we […]

Got your money; wind shaking up the merchant revenue order?

Ideal weather conditions for wind and solar across the NEM in recent weeks saw renewables hit new highs in the National Electricity Market (NEM). A recent update from the Australian Energy Market Operator (AEMO) indicated that around noon on the 20th of August, wind and solar contributed 11.7GW – 46.5% – of total energy for […]

Don’t let the sun go down on me: solar in the sunshine state

Previously, in Issue 45, we examined how wind and solar technologies are performing against (and impacting) the time-of-day price shape in New South Wales (NSW). In this Chart of the Week, we move further north to examine the situation in Queensland and the profound impact solar is beginning to have on the merchant market in […]