Key electricity market observations for the week ending 3 May 2019:
The LGC market was volatile last week with spot prices ranging between $37.50/certificate and $44.25/certificate. There is a lack of liquidity in the LGC market at the moment which is a key driver behind the volatility in prices.
QLD weekly average spot price and demand were $69.41/ MWh and 6,136 MW respectively, which were both higher than the previous week. Higher Operational demand was largely a function of the absence of public holidays and less generation from rooftop solar.
SA weekly average spot price and demand were $81.72/ MWh and 1,177 MW respectively, which were consistent with the previous week. Despite prices being consistent there were sustained periods of negative price outcomes in SA. Negative prices were a function of excess generation in the state coming from intermittent generation being wind and solar and a constrained interconnector to VIC.