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, we investigate recent trends in sustained MPC events and provide commentary on drivers behind these trends as well as what to expect going forward.