I can’t believe it’s not b[e]tter?… spreads getting better in NSW

The Federal Government announced this week that they will step into the electricity market (through the state-owned Snowy Hydro) to build up to 1,000MW of gas-fired generation to fill the gap left by the Liddell Power station for the 2023-24 summer unless the market can demonstrate final investment on dispatchable power by 2021. It comes […]

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 […]

GPG: From middle of the order to the nightwatchman?

Across multiple reports published in recent weeks, the topic of changing supply dynamics has been a key focus as more renewable energy resources continue to enter the system including both grid-scale and behind-the-meter assets. Much of the commentary has focussed on the changing operation of coal generation in the face of increased solar penetration, however, […]

One of these things is not like the others: FCAS separation value

Energy storage has been at the forefront of conversations resulting from AEMO’s newly released 2020 Integrated System Plan (ISP). The ISP states that 6-19GW of dispatchable resources are needed to support more than 26GW of new renewables. So where will battery energy storage fit in and where will they make their money? We see from […]

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 […]

Ramping: Brought into focus but always in the frame

With the release of AEMO’s Integrated System Plan (ISP) comes increased commentary on the need for power system services critical to ensuring the secure operation of the NEM. Of growing importance are services to provide voltage control and system strength, frequency control and inertia, ramping and dispatchability. In this week’s ‘Chart of the week’, we […]

A little respect (just a little bit): FCAS costs hit solar hardest

Wholesale energy prices may have hit some of their lowest prices in years, but the total cost of Frequency Control Ancillary Services (FCAS) skyrocketed in Q1 resulting from the South Australian Islanding event. The islanding event threw back into the spotlight the importance of understanding the costs associated with FCAS causer pays. This Chart of […]

The wind and the sun: an old age quarrel… or friendship?

Last week, the Australian Energy Market Operator (AEMO) released the Q2 edition of its Quarterly Energy Dynamics (QED) report. A key finding in the report is the reduction in wholesale electricity prices seen last quarter. With government-supported Renewable Energy Zones (REZs) being proposed especially in New South Wales (NSW), what does this mean for renewable […]

Race to the bottom: Negative prices on the rise and spreading

Negative prices are becoming a more frequent occurrence in the NEM as variable renewable energy (VRE) plays a larger role in the supply mix. Negative priced offers from generators form a large part of the MW capacity offered into the market. The negative prices we see in dispatch intervals reflects the situation were there is […]

For a Few Dollars More: more markets proposed, not all survive

There are a mountain of rule changes currently before the Australian Energy Market Commission (AEMC), many of which will fundamentally change the manner in which the National Electricity Market (NEM) operates. In this Chart of the Week we rate the impacts and probability of implementation of the rule changes being considered as part of the […]