NECA: Assessment of the market’s performance during summer 2002-03
An assessment of the market’s performance last summer is available to download.
Prices averaged $27/MWh in Victoria, $35/MWh in South Australia, $42/MWh in New South Wales and $56/MWh in Queensland. These prices represent increases of around half in Queensland and New South Wales, and a quarter in South Australia, compared to the summer of 2001-02. The summer of 2001‑02 was, however, one of the mildest on record.
Extreme early summer conditions in Queensland saw a new record demand on 4 December. The loss of the Snowy – Victoria interconnector and the resulting separation of the Victoria and New South Wales regions on 12 December, and further extreme conditions in New South Wales on 30 January when a new record demand was set, all contributed to the increased prices. The effects of bushfires throughout New South Wales, the ACT and Victoria, and significant network constraints across all regions, also contributed to the increase.
Total energy requirements increased by around 1,700GWh or 4 per cent compared to the previous summer. In New South Wales, an all-time record demand of almost 12,350MW was reached on 30 January. This represented an increase of almost 260MW or 2 per cent on the previous winter peak and was more than 1,300MW higher than the previous summer. New record demands of 7,105MW and 8,041MW respectively were also set in Queensland and Victoria. Demand in South Australia reached 2,790MW on 4 February, just short of its highest summer total that was reached in February 2001.
There was an additional 1,250MW of capacity commissioned over the summer with generation at Tarong North and Millmerran reaching near full capacity. As a result of the completion of Murraylink and the SNOVIC400 project, the import limits from Snowy to Victoria and Victoria to South Australia rose to 1,900MW and 720MW respectively.
There was no involuntary loadshedding as a result of a supply shortfall. NEMMCO did, however, direct-on a generator in Victoria on 12 December.
Rebidding activity reduced by a quarter compared to the previous summer, in part reflecting the generally milder weather. The biggest reductions occurred in New South Wales and South Australia.
