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 […]

When they were up they were up – have we underestimated DER

It has been a big couple of months for Distributed Energy Resources (DER), especially in relation to the policy and regulations that will play a large role in how these assets are controlled in the future. Over the last month we have seen Energy Networks Australia release their Open Energy Network Project position paper (OpEN […]

Now speed up, gas pedal, gas pedal: faster transition for NSW?

Last month, the NSW government issued a call to renewable developers to respond to a Registration of Interest to develop a pilot Renewable Energy Zone (REZ) in the Central-West region of the state. This REZ – with an estimated worth of $4.4 billion in private investments – is expected to unlock 3GW of new renewable […]

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 […]

“These aren’t the [droids] prices you’re looking for”: peaks are up

The Federal Government released their Technology Investment Roadmap Discussion Paper (‘Roadmap’) earlier in May. The Roadmap is a solidification of the Federal Government’s position that they will support investment in low carbon technologies to reduce emissions rather than support a tax or carbon price scheme to assist the transition to a low carbon economy. One […]

Correlation does not imply causation: the story of GPG demand

“Gone are the days of $4/GJ gas”. This is a phrase that many following the Australian energy markets have heard numerous times and believed to be true since the advent of the Liquified Natural Gas (LNG) industry in Queensland. For years, this phrase held true with the gas spot price in Victoria (a key producing […]

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 […]

Retail applications on track for another year of big growth

Its been 8 months since we last took a look at the new registrants in the retail electricity sector in Issue 2 of our Chart of the Week. This week we look at whether the growth in retail licence applications has continued and what sectors new retailers are focusing on. On 1 May 2020, Octopus […]

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 […]

Things are not what they seem: capturing intraday price volatility

The Australian Energy Market Operator’s (AEMO’s) recently released Quarterly Energy Dynamics (QED) report for Q1 2020 stated that average spot electricity prices in the National Electricity Market (NEM) fell to their lowest levels in 4 years ($66/MWh) last quarter. Victoria, in particular, witnessed a significant drop – 48% – from Q1 2019 average price despite […]