The surge in NEM spot prices since 2015, and related impacts on contract and retail prices, have been extensively discussed and analysed in many forums, from ACCC inquiries to Twitter….Read More
Areas of deeper analysis
Some brief analysis, on the sidelines of our data gathering for the Generator Report Card 2018, looking at the changing incidence of Aggregate Absolute Off-Target for DUIDs across the NEM.
Data compilation of the Generator Report Card is underway, given we’ve stepped over into 2019. Here’s a summary insight about the nature of coverage of bound constraint equations across all units in the NEM.
Some conversations with new generation developers about their prospective developments in northern Queensland has prompted some analysis to help them understand the size of the addressable market for them.
We’re preparing an extensive “Generator Report Card”, and would welcome discussion (with your pre-orders)
Following from (what we have seen as) an increase in diversity of concerns (and claims) about different aspects of generator performance, we’re leveraging our extensive data set and capabilities to have a deeper look, leading to the publication of a Generator Report Card with data to 31st December 2018. We’d welcome input from those who wish to pre-order their copies now at an initial low rate.
A quick outline of what have been (in my view) the three key reasons why wholesale electricity prices in Queensland have risen, compared to 5 years ago.
The energy supply industry is now a case study of major disruption and this is causing chaos. We are now witnessing the simultaneous high prices in electricity and gas – importantly at the commodity level – not network driven this time – although that just changed with the AER loss – more petrol on the fire.
Generators used to consider the Australian National Electricity Market (NEM) FCAS causers pays factors (CPF), used to allocate FCAS regulation costs across the market, as an obscure and unimportant technically challenging curiosity. Since 2014, the cost of FCAS regulation services for generators has increased from just under $5 million per year to greater than $60 million for 2016 and now has the attention of all of the generators, especially if their portfolio includes generation assets in regions with a lack of FCAS regulation providers and high prices such as South Australia.
The National Electricity Market (NEM) is designed to operate at 50 Hz. Frequency deviation occurs when generation and load are mismatched. It is important in a lightly meshed and long network such as the NEM to maintain tight frequency control and that frequency response is available throughout the network.
Some quick thoughts about Tesla’s promise to “fix South Australia’s power woes”. Which specific problem is Tesla promising to fix?
Because of (technical and commercial) interconnectedness in the National Electricity Market, the possibility of unintended consequences should be kept in mind
Electricity consumption in the National Electricity Market (NEM) increased by 0.8% in 2016, this is on top of a 1.1% increase in 2015. Queensland and NSW experienced increases in consumption with all other states experiencing a reduction.
Can you help me understand this apparent (and large) disconnect between words and actions in the GreenPower space?
Transformation in the electricity industry is occurring at an astounding rate. What’s more, it’s happening globally and Australia is pretty much ground zero. As a result, a new energy ecosystem is emerging. Accenture has recently released three reports which cover different aspects of this new ecosystem. These are the ‘New Energy Consumer’ report, ‘Digitally Enabled Grid’ report and the combined report for the ENA and CSIRO titled ‘Insights from Global Jurisdictions and Evolving Business Models’.
Some thoughts about the possible uplift to Infigen Energy revenues, stemming from higher forward contract prices in the South Australian region of the NEM
In today’s energy sector, it is rare to get electricity networks, retailers, generators and system controllers in the same room at the same time. In a deconstructed market about to be transformed by distributed energy, how will decisions be made around how it is dispatched?
A starting list of factors that I’d look further into, if I was sucked into the “rabbit hole” of assessing all of the contributing factors leading to the Remarkable Prices seen in Q2 2016 – and which could continue into the future.
Over on our Demand-Response focused site, I posted an article yesterday providing a high-level comparison between contract prices for calendar 2015 and final spot prices (for the 4 mainland regions). This was in response to questions from a particular energy user.
Our guest author, Mike Williams, has posted some analysis (over on the specially-focused Demand Response site) looking at the benefits of spot exposure and Demand Response in Queensland
Back on 8th October, I spoke at All Energy in Melbourne on this topic. Given the questions posed after the session, it seemed that it might be of value to some WattClarity readers if I narrated over the top of the presentation and included it here, for future reference.