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 […]

Show me the future: can storage bank on FCAS being bankable?

Previously we have examined the importance in FCAS prices for the revenue stream for batteries. With a growing interest in batteries in the market, this ‘Chart of the week’ takes a deeper look into the impact of bidding behaviour on the Regulation Raise price since 2012. Figure 1 illustrates the monthly average of Regulation Raise […]

Green hydrogen costs plummet, LNG prices soar

The ACCC currently calculates the LNG netback price as the price a gas exporter could receive for gas exports excluding the costs to convert and ship the gas. Asian cold weather and supply bottlenecks have driven the February LNG netback price to nearly $20 a gigajoule, more than double the previous month, which in itself […]

Gassed out: are renewables running gas out of the market?

Last week, the Australian Energy Market Operator (AEMO) released its ‘Quarterly Energy Dynamics’ (QED) report for Q4 2020. The report highlighted that operational demand has fallen to its lowest quarterly level since 2001; largely driven by mild weather and strong uptake of rooftop solar. Coupled with record high wind and solar production, this has caused […]

Yesterday, [battery storage] was such an easy game to play

FCAS continues to drive the majority of revenues for battery storage in the NEM (there are five active utility-scale battery storage projects operating in the NEM; three in SA and two in VIC), however given the forecast pipeline of prospective storage projects (with two 500MW+ projects having already been announced in 2021), it is unclear […]

Lower prices but a similar story for those setting the price

2020 was one for the books with plenty of interesting events happening worldwide and also in the energy markets. For the NEM specifically, it was a time of significant changes in price outcomes compared to the previous years of comparatively higher prices. However, now comes the question of whether NEM prices continue to follow the […]

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 […]

“You only get one shot, do not miss your chance to [dispatch]”

We have had a number of contingency events this year that have stretched the electricity market to it limits including bushfires, high winds and high temperatures. These are all weather events that we can expect will continue into the future, putting continue stress onto electricity infrastructure (see CSIROs report). These are the events we saw […]

A little [ price volatility ] goes a long way

The year of 2020 is slowly ending which means that summer has well and truly arrived. However, for those with some connection to the NEM, this is a period where speculation peaks in terms of what summer has in store for us – and with good reason! Of all parts of the year, the March […]

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, […]