After reduced prevalence over the shoulder months since summer, we see today that the 871-855 constraint in QLD has popped into view again.
See here in a snapshot from ez2viewAustralia (our trader’s interactive 2-screen dashboard) how this constraint has been capping output from generators in the south-west of QLD (the generators with a “+ve” term), whilst acting to support increased output in the north-east (the generators with a “-ve” term):
(it’s a big 2-screen image, so click on it for a better view)
If you’d like us to explain more about what you see in this image, please give us a call (07 3368 4064)
Traders in the market will recall that the instances of the constraint in QLD were perhaps the only highlight in an otherwise very lacklustre summer 2011-12. At that time, generator bidding strategies saw prices jump on some occasions when the constraint was bound.
With prices already having gone through a step-change with the carbon tax, what does this mean for the coming weeks and months?