Australian

  • Low carbon generation

    Australian Chart of the week | No averages allowed: a look at recent NEM spot prices

    2020 was a tame year for the National Electricity Market (NEM), with few contingency events of note (apart from the Q1 separation of Victoria (VIC) and South Australia (SA)) and wholesale spot prices trending to their lowest in over five years. In contrast, 2021 has taken an eventful turn with...

  • Low carbon generation

    Australian Chart of the week | Going for green: record level of wind generation in the NEM

    In the spirit of the Australian Olympic team, instantaneous wind generation in the National Energy Market (NEM) reached new heights during a blustery end to July. Output hit a record 6,427MW at 8:05 pm on 25 July, after breaking 6,000MW for the first time just the day before. In this...

  • Low carbon generation

    Australian Chart of the week | Up and down: price volatility in Queensland

    In our previous ‘Chart of the week’, we observed increased intraday price volatility since late May, where we are seeing higher morning and evening prices. The Australian Energy Market Operator’s (AEMO’s) released Quarterly Energy Dynamics (QED) report for Q2 2021 attributed the price increase to reduction of thermal generation supply...

  • Low carbon generation

    Australian Chart of the week | Examining Victoria’s recent wind drought

    This ‘Chart of the week’ examines the recent spell of low wind generation in Victoria and associated elevated prices. Previously, ‘Chart of the week’ issue 78 highlights the risk of wind droughts within the National Electricity Market (NEM) due to the high correlation of wind fronts both within states and...

  • Commercial and market outlook

    Australian Chart of the week | Two roller coaster rides for the price of one? Preliminary vs final MLFs

    In recent years, movements in marginal loss factors (MLFs) have received significant attention in the National Electricity Market (NEM). Many renewable projects in remote areas have experienced material MLF reductions as more supply connects nearby. For example, the MLF for Broken Hill Solar Farm saw a whopping 50 ppt drop...

  • Low carbon generation

    Australian Chart of the week | A transition period is a period between two transition periods

    Australia’s energy transition enters a new decade. A big part of the first quarter has focused on greater renewable integration into the grid. Given the level of attention on these integration issues, now is a good time to review the last decade. This Chart of the week explores how black...

  • Energy storage and flexibility

    Australian Chart of the week | Distribution networks unDER the pump

    Rooftop solar has grown rapidly over the last decade, numbers indicate that almost 10GW has been installed across the NEM. However, AEMO’s projections indicate that there is still plenty more to come (~4GW over the next decade). The effects of behind-the-meter (BTM) solar on market outcomes are well documented (including...

  • Energy storage and flexibility

    Australian Chart of the week | Guess who’s back… Batteries are back… back again

    We have seen a number of Australian storage projects announced over the past four months. AGL has announced 200MW of storage with Maoneng and a further 100MW in Queensland. Neoen has also announced an upgrade to the Hornsdale Power Reserve (HPR) by another 50MW. This week's Chart of the week is an update...

  • Regulation and policy

    Australian Chart of the week | Too low for zero: I’m on a losing streak

    On the morning of 6 February 2020 AEMO issued market notice 73857. This was in response to the enduring islanding of the SA network informing the market that when SA demand falls under 800MW a number of generators will be constrained down to zero. This includes more than 500MW of...

  • Energy storage and flexibility

    Australian Chart of the week | Is now the time to consider an operating reserve service?

    This summer has already seen a number of instances of tightening supply/demand balance across the National Electricity Market (NEM). This has consequently resulted in a range of reactions from the market operator (AEMO) and other market stakeholders. There were extreme weather events as well as fluctuating supply and disruptions. As...

  • Low carbon generation

    Australian Chart of the week | The fire between us: the day bushfires separated NSW & Victoria

    This summer has already sprung many newsworthy events for the NEM including broader climate discussions with increased tightening of demand/supply balance. On Saturday 4 January, bushfires directly impacted the NEM. They triggered a series of supply disruptions resulting in power prices in NSW hitting value of lost load (VoLL). In...

  • Energy storage and flexibility

    Australian Chart of the week | “Feel the flow”: changing interconnection dynamics post Liddell

    Locational constraints, high renewable penetration zones and fossil fuel failures or retirements are changing the nature of electricity flows in the market. As a result, Interconnection in the National Electricity Market is playing an increasingly important role in balancing supply and demand. On 4 January 2020, bushfires caused transmission outages...

  • Energy storage and flexibility

    Australian Chart of the week | It’s gettin’ hot in here: SA VoLL – a prelude to summer?

    Summer is well and truly here with mercury readings this week showing warm temperatures across the NEM. South Australia, in particular, has seen maximum temperatures hovering around 40°C for the week. In this Chart of the week, we take a look at NEM outcomes this week where moderately high demand,...

  • Energy storage and flexibility

    Australian Chart of the week | Prices in the NEM: Is variability the new black?

    The price escalation in the NEM in recent years has been well documented. Closure of ‘low-cost’ coal generation (particularly Hazelwood) has seen average prices in the NEM increase significantly. This is a result of the overall supply/ demand balance tightening. Some of this tightness has been alleviated by the significant...

  • Low carbon generation

    Australian Chart of the week | SA is breaking records… but the ducks are everywhere

    Recently, there has been a lot of commentary on minimum demand levels/ the ‘duck curve’ in South Australia (SA). This due to the state with its minimum demand breaking record three times in a month. In this Chart of the week, via a time-of-day analysis, we analyse other regions of...

  • Energy storage and flexibility

    Australian Chart of the week | The more things change, the more they stay the same…

    This Chart of the week focuses on the comparatively small but important Frequency Control Ancillary Services (FCAS) in the NEM. FCAS in terms of total dollars is minuscule in comparison to the total energy bill. While the proportion may appear small, its function is key to maintaining a secure operating...

  • Energy storage and flexibility

    Australian Chart of the week | Marginal loss factors: are we going average or what?

    Marginal loss factors (MLFs) are now a hot topic in the NEM after being a relatively unexciting feature of the market. Previously, in the period 2000-2015, MLFs were reasonably predictable and variations year-on-year were minor. This reflected the stability of the generation sector. In contrast with today, new generators are...

  • Business supply and services

    Australian Chart of the week | I think I can, I think I can: Can new retailers make it in the NEM?

    Electricity retail registrations have exploded since 2016. In this time, the Australian Energy Regulator awarded 30 new electricity retail licenses. This represents an increase of 70% since 2016. In this week's Chart of the week, we look at the annual market entrants from 2012. We also explore the benefits of...

  • Business supply and services

    Australian Chart of the week | Retail markets: the biggest shake-up since deregulation?

    The energy retail sector in Australia is undergoing a significant shake-up. This is largely due to regulatory intervention, ongoing rule changes and market entry. Consequently, there have been concerns over retailers who charge disengaged households and small businesses higher rates and generally rising retail prices. As a result, two default...

  • Energy storage and flexibility

    Australian Chart of the week | Early coal closure signalled: a sign of things to come?

    The news from Alinta this week that one of Victoria’s largest coal plants - Loy Yang B - is unlikely to see out the full length of its licence should not be a major surprise to the market. The 1.1GW Loy Yang B station has a licence to run until...