economic island







South Australia hits the Cumulative Price Threshold

For only the 5th time in 11 years of NEM history (and the 3rd time for South Australia) four consecutive days of price spikes have forced the Cumulative Price to the Threshold, and AEMO has imposed price caps to prevent retailers from going bust.




Prices race in QLD and NSW as horses race in VIC

Tuesday 3rd November, and the temperatures that had driven prices higher in SA the previous day moved eastwards.

Whilst VIC demand was lower as everyone lost their shirts on a horse, demand climbed in NSW and QLD, dragging prices upwards as well.




Prices Surge in QLD and NSW as Demand Climbs

We noted yesterday (Wednesday 10th June) that NEM-wide demand climbed past 32,000MW for the first time this winter.

The following evening saw demand climb to similar levels (a peak of 32,054MW at 18:20 – so 35MW higher than the previous night). However the situation on Thursday night was different in two key ways…



Prices depressed in the NEM – Winter 2008

Our Managing Director spoke at the “Australian Energy & Utility Summit 08” in
Sydney on Tuesday 22nd July 2008, touching on a number of issues including the depressed prices experienced in winter 2008.


Our review of the heat wave in South Australia

With demand soaring, and interconnectors constrained, generators in South Australia and Victoria took what opportunity they had to force the price high. So successful were the South Australian generators that the Cumulative Price Threshold was reached in South Australia and, under NEM Rules, an Administered Price Cap was applied for a period of time.


Analysis of price volatility in the QLD region over summer 2007-08

Our Managing Director was asked to speak at the “Queensland Energy” conference in Brisbane on Wednesday 12th March – specifically addressing the topic of price volatility in the NEM.

To provide the basis of discussion during the conference, we focused our analysis solely on Queensland region (to make the topic more manageable).
In our review of volatility in the Queensland region, we focused specifically on 3 core attributes of the market: Queensland dispatch prices; NEM-Wide Instantaneous Reserve Plant Margin; and the concept of “Economic Islands”.



11th January 2007 – first spike in demand above 30,000MW

There was a temperature-driven spike in demand across the NEM later in the week beginning Sunday 7th January – culminating in the summer’s first demand peak above 30,000MW (on Thursday 11th January).

On this occasion, the spot price spiked above $1000/MWh in Queensland, NSW, Snowy and Victoria,