Key electricity market observations for the week ending 10 May 2019:
AEMO released the final FY20 Marginal Loss Factors (MLFs) on Friday. Earlier this year, the MLFs received unprecedented attention as a result of the material changes for some power stations. The worst affected power station in the NEM was Broken Hill solar farm which is owned by AGL.
QLD weekly average spot price and demand were $72.75/ MWh and 5,868 MW respectively. Average weekly demand was 268 MW below that of the previous week. This can largely be attributed to an uplift in rooftop solar generation.
NSW futures generally declined throughout the week, however like QLD, volumes traded over the ASX were relatively small.
VIC weekly average spot price and demand were $103.42/ MWh and 4,828 MW respectively. Spot prices at these levels is very high in a historical context for VIC which (prior to the retirement of Hazelwood) had significantly lower prices.