Electricity Market Prices – Week ending 5 July 2019

Key electricity market observations for the week ending 5 July 2019:

  • Energy Australia’s (EA) Mt Piper coal-fired power station is set to receive an upgrade with EA set to announce plans to increase the plants’ reliability and generational capacity by 30 MW without using additional coal volume (burning refuse instead of coal).  This is aimed to assist with securing the plants’ place in the NEM and reduce prices for another 24 years. News of extending the life of Mt Piper power station is welcomed comfort for NSW prices given the forecast closure of the AGL’s ageing Liddell coal-fired station in 2022.
  • Reported on the 3rd of July, according to data compiled by the University of Melbourne College of Climate and Energy’s Dylan McConnell, that renewables have generated more MWh’s than brown coal for the first time ever in the financial year just ended. A 13 per cent fall (as recorded by those referenced) of brown coal generation represents 1,248 gigawatt hours of underperformance which is the lowest generated since 1993.
  • CS Energy’s 50/50 retail joint venture with Alinta Energy which began in August 2017 is reported to have delivered increased savings and greater competition for electricity users in South East Queensland. The AEMC reported findings from Queensland customers including:
    • The three biggest retailers no longer hold the majority of market share with Energy Australia’s third largest retailer tag and market share being overtaken by Alinta Energy.
    • Retailers noted an uplift in competition in Queensland in the past year off the back of the JV agreement which has facilitated increased discounting of products.
    • Customer switching between retailers increased off the back of Alinta Energy’s new presence and expansion in the retail market.
Queensland

New South Wales

Victoria

South Australia

Source: AEMO / ASX Energy