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 […]

You’ll have to share your cake: wind v gas in ‘epeak’ battle

Spot prices are back in the headlines with increased renewable generation impacting both long term price trends as well as driving intraday value shifts; especially across mainland regions. With significant renewable generation still to come to replace exiting coal as covered in Issue 39, the key question then becomes: how much value is there in […]

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 […]