Key electricity market observations for the week ending 31 May 2019:
The Bureau of Meteorology updated its three month rainfall outlook last week with the winter climate outlooks suggesting drier than average winter for much of eastern and southern Australia. The outlook is concerning for both drought conditions and also water levels at hydro power stations (Snowy Hydro and Hydro Tas). Current water levels at Snowy are 24.4% and are trending downwards.
QLD weekly average spot price and demand were $72.86/ MWh and 6,023 MW respectively. Average demand and spot prices were similar to the week prior however from Wednesday QLD spot price volatility increased.
NSW weekly average spot price and demand were $77.27/ MWh and 8,230 MW respectively. There was a 534 MW increase in average demand and despite this, spot prices remained in-line with the previous week. The uplift in demand can largely be attributed to colder temperatures in Sydney.
SA weekly average spot price and demand were $74.96/MWh and 1,315 MW respectively. SA enjoyed periods of consistent and high levels of wind generation from Sunday to Wednesday which was key to the relatively soft spot prices.