Average prices for the week were around $20/MWh in Queensland, New South Wales and Victoria. This represents a reduction of around 10 per cent compared to the previous week.
In South Australia prices averaged $39/MWh. A price spike on Thursday afternoon to $3 387/MWh, coincided with a step change in the price offered by TRU Energy through their day ahead bids.
The average price in Tasmania was $54/MWh for the week, the lowest since Tasmania entered the market.
Turnover in the energy market for the mainland was $71 million. The total cost of ancillary services for the week was around $700 000 or one per cent of turnover. Turnover in Tasmania for the week was $10 million and the cost of ancillary services was $117 000 or one per cent of turnover.
Significant variations between actual prices and those forecast 4 and 12 hours ahead occurred in 22, or 7 per cent, of trading intervals, with demand forecast error the main contributor. Demand forecasts produced 4 and 12 hours ahead varied from actual by more than 5 per cent in around a quarter of all trading intervals across the market. These variations were most frequent in South Australia occurring in around two thirds of all trading intervals.
The AER would welcome comments on the information contained in, or the layout of, the report. Comments should be sent to Peter Adams or Mark Wilson, AER, GPO Box 922, Adelaide SA 5000 (email AERInquiry@aer.gov.au; fax (08) 8213 3414).
Figure 1 sets out national demand and spot prices in each region for each trading interval. Figure 2 compares the volume weighted average price with the averages for the previous week and the same quarter last year. Figure 3 compares the weekly price volatility index on the same basis.
Figure 1 National demand and spot price all regions
Figure 2 Volume weighted average spot price for energy market ($/MWh)
Maximum spot prices for the week were $29/MWh in Queensland, $33/MWh in New South Wales, $40/MWh in Victoria and $61/MWh in Tasmania. In South Australia the maximum spot price was $3 387/MWh on Thursday afternoon.
There were no low reserve conditions forecast for the week.
The total cost of ancillary services on the mainland for the week was around $706 000 or one per cent of the total turnover in the energy market. A network outage in Victoria which commenced on Monday 14 November continued this week. This led to further increased requirements for lower contingency services.
Figure 4 Volume weighted average frequency control ancillary service prices (excluding Tasmania)
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
1.8
0.6
1.02
1.59
0.27
1.82
5.51
1.77
Previous week ($/MW)
2.7
0.74
1.17
1.67
0.31
2.45
7.53
2.1
Last quarter ($/MW)
1.62
0.91
1
1.36
0.2
0.64
2.29
1.56
Market cost($1000s)
95
32
70
35
3
87
347
39
% of energy market
0.13%
0.04%
0.1%
0.05%
0%
0.12%
0.49%
0.05%
The total cost of ancillary services in Tasmania for the week was $117 000 or one per cent of the total turnover in the energy market in Tasmania.
Figure 5 Tasmanian volume weighted average frequency control ancillary service prices
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
1.15
1.05
1.05
1.08
1.09
1.05
1.05
1.05
Previous week ($/MW)
1.11
1.05
1.05
1.06
1.07
1.05
1.05
1.05
Tasmania Market cost($1000s)
9
9
9
9
14
32
26
9
% Tasmania of energy market
0.09%
0.08%
0.08%
0.09%
0.14%
0.3%
0.24%
0.08%
Figure six shows the daily breakdown of price for each frequency control ancillary service. It also includes the cost of services sourced locally and in Tasmania.
Figure 6 Daily frequency control ancillary service prices
Figure seven shows the weekly participation in each of the ancillary service markets on a regional basis.
Figure 7 Regional participation in ancillary services
Figures eight and nine show 30-minute prices for each of the ancillary services.
Figure 8 Prices for raise services
Figure 9 Prices for lower services
Figures 10 and 11 show the 30 minute Tasmanian price for each of the ancillary services.
Figure 10 Tasmanian prices for raise services
Figure 11 Tasmanian prices for lower services
Figures 12 and 13 present both the raise and lower requirements for each service over the week.
Figure 12 Raise requirements
Figure 13 Lower requirements
Figures 14 and 15 present both the raise and lower Tasmanian requirements for each service over the week.
