Key electricity market observations for the week ending 28 June 2019:
AGL announced during the week that it anticipates first gas to be delivered from its proposed LNG import terminal in the second half of FY22. Originally, AGL indicated that gas would be delivered during FY21.
The ASX released an update on Market-Making arrangements for the ASX Australian Electricity Futures market which come into effect on 1 July 2019.
The Bureau of Meteorology updated its three month rainfall outlook which marginally improved the possibility of rainfall in the Snowy Hydro catchment region. The change was marginal and isn’t anticipated to improve (improve meaning soften futures) sentiment in the futures market. Water levels are currently 23.5% and are on a continuous downward trend. At this stage it is too early to say whether the snow melt will translate into meaningful increase in water levels.
AEMO released the Victorian Annual Planning Report (VAPR) which assess the adequacy of the Declared Shared Network (DSN) to meet reliability and security needs over the next 10 years. The report highlights the unprecedented growth in non-synchronous generation in the western part of Victoria and the technical challenges this brings as well as distributed energy generation in the form of rooftop solar.