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 and increased demand.
In this ‘Chart of the week’, we examine the monthly price volatility in the last 5 months for the state of Queensland by using standard deviation of monthly price as a measure of how widely prices are dispersed from the average price. Comparing against the generation mix over the same period, we take a closer look at the impact of reduced coal generation on the price volatility.