Author: Alex Driscoll

09 Jul Enhancements to RERT

The Reliability and Emergency Reserve Trader (RERT) is an existing intervention mechanism that allows the Australian Energy Market Operator (AEMO) to contract for additional reserves such as generation or demand response that is not otherwise available in the market. AEMO uses RERT as a safety net at times when a supply shortfall is forecast or where practicable for power system security. RERT is classified as an emergency reserve or strategic reserve as it may only be used as a last resort to avoid unnecessary load shedding. This is typically required when the market is under pressure from extreme weather or during unexpected generation failure. RERT can be additional generation or load curtailment...

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09 Jul STATE OF THE ELECTRICITY MARKET – AUTUMN MARKET OVERVIEW

The electricity spot prices in Q219 (April to June) were unsurprisingly lower than the preceding 3 months of Q119 (January to March). Although Q219 experienced some volatility, this was far from the extremes we saw in Q119 with VIC and SA hitting the market price cap in February. Prices during Q219 were higher than Q218 in QLD, VIC and TAS, however lower in NSW and SA. Looking back across the last 10 years, prices have been higher for all regions. Figure 1: Historical prices for autumn (Source: AEMO) It should be noted that prices in both 2012 and 2013 were affected by a carbon tax, which was subsequently repealed in 2014. Since 2015 there...

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09 Jul High solar generation vs spot prices in Queensland

Solar generation and its impact on spot price is a topic of major discussion, particularly in the ‘Sunshine State’ of Queensland where there is a continuous pipeline of solar generation development. This raises the question: is strong solar generation having an impact on spot prices, and if so, is it lowering or increasing prices? Increasing Large-scale Solar Penetration in the NEM It is no secret that solar generation has increased dramatically over the last 12-18 months. From 1 January 2018 to 30 June 2018 (inclusive) the average daily production of large-scale solar generation in Queensland was only approximately 14.2 MW, only accounting for 0.085% of total Queensland generation. (Source: AEMO) For the six...

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09 Apr STATE OF THE ELECTRICITY MARKET – SUMMER MARKET OVERVIEW

The electricity spot prices were higher for the Summer period (January - March) compared to the preceding three months. Although demand remained static, prices increased as a result of coal and gas generation setting prices at elevated levels. Average prices increased in all regions from the previous summer, with Queensland increasing the least at 23% and Victoria increasing the most at 62%. Across all regions, prices during the 2019 summer were higher than the 2018 summer and were very high in a historical context for Victoria, South Australia and Tasmania. Looking back across the last 10 summers, 2019 summer prices are at their highest levels in most states. Figure 1: Historical prices...

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01 Mar CleanCo Moving Ahead – Part 2

With expectations that CleanCo will be trading in the NEM by mid this year, things are getting into full swing. Last week CleanCo appointed its first two key executives – Miles George and Geoff Dutaillis. Who are these new executives? Miles George has been appointed the Interim Chief Executive Officer (CEO) at CleanCo. His role at CleanCo is to secure cleaner, more affordable, sustainable energy and secure supply of electricity for Queensland (QLD). He was previously the CEO and Managing Director of Infigen Energy. After leaving Infigen Energy in 2016, Miles continued as a strategic adviser until December 2017. During and after his time at Infigen, Miles has been the Chairman of...

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