Key electricity market observations for the week ending 21 February 2020:
The average weekly spot price and demand for QLD was $61.72/MWh and 7,356 MW respectively. The recent coronavirus fears have reduced the demand for LNG from Curtis Island in QLD, which is resulting in cheaper gas prices in domestic markets, and longer run-time of Clean Co’s Swanbank E and Origin’s Darling Downs gas-fired generators.
The average weekly spot price and demand for NSW was $61.15/MWh and 7,806 MW respectively. Bayswater Unit 2 continues to remain offline whilst Mt Piper lost Unit 2 last Sunday resulting in Tallawarra gas plant filling the gap. Water levels in Lake Eucumbene, Snowy Hydro’s main catchment continue to decline with the current concern that the Bureau of Meteorology is forecasting yet another dry autumn for 2020 which could lead to Snowy having to reduce their run-time in the cooler months due to water constraints.
The average weekly spot price and demand for VIC was $53.84/MWh and 4,655 MW respectively. Despite Loy Yang A2 coming offline on Monday 17/02, the VIC region’s spot prices failed to see much volatility at all due to continued cooler weather for this time of year.
The average weekly spot price and demand for SA was $66.33/MWh and 1,113 MW respectively. The VIC to SA interconnector returned to service, although at seriously constrained levels with very little headroom on imports and exports at any given time.