Demand peaked in Queensland at 8200MW on Wednesday, slightly surpassing the record set the previous week. Spot prices averaged $20/MWh in Queensland, New South Wales and Victoria.
A number of short term price spikes were seen in South Australia and Tasmania this week, leading to increases in average prices of $45/MWh and $49/MWh respectively.
Turnover in the energy market for the mainland was $80 million. The total cost of ancillary services for the week was around $200 000, or 0.5 per cent of turnover. Turnover in Tasmania for the week was $8 million with the cost of ancillary services totaling $270 000 or three per cent of turnover.
Significant variations between actual prices and those forecast four and 12 hours ahead occurred in 46, or around 14 per cent of all trading intervals. Demand forecasts produced four and 12 hours ahead varied from actual by more than 5 per cent in almost a third of all trading intervals across the market. These variations were most frequent in South Australia occurring in around two thirds of all trading intervals.
The AER would welcome comments on the information contained in, or the layout of, the report. Comments should be sent to Peter Adams or Mark Wilson, AER, GPO Box 922, Adelaide SA 5000 (email AERInquiry@aer.gov.au; fax (08) 8213 3414).
Figure 1 sets out national demand and spot prices in each region for each trading interval. Figure 2 compares the volume weighted average price with the averages for the previous week and the same quarter last year. Figure 3 compares the weekly price volatility index on the same basis.
Figure 1 National demand and spot price all regions
Figure 2 Volume weighted average spot price for energy market ($/MWh)
The maximum spot price for the week in Queensland was $134/MWh. In New South Wales and Victoria the price peaked at $45/MWh, whilst in South Australia the highest price for the week was $4 173/MWh on Tuesday. In Tasmania, the highest price for the week was recorded at 12.30pm on Thursday at $1 700/MWh.
There were no low reserve conditions forecast for the week.
The total cost of ancillary services on the mainland for the week was around $200 000 or around 0.5 per cent of the total turnover in the energy market.
Figure 4 Volume weighted average frequency control ancillary service prices (excluding Tasmania)
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
0.9
0.44
0.95
1.17
0.16
0.27
0.8
1.87
Previous week ($/MW)
1.67
0.57
1.2
1.85
0.37
0.42
7.26
1.71
Last quarter ($/MW)
1.62
0.91
1
1.36
0.2
0.64
2.29
1.56
Market cost($1000s)
42
21
61
25
1
2
13
40
% of energy market
0.05%
0.03%
0.08%
0.03%
0.01%
0.01%
0.02%
0.05%
The total cost of ancillary services in Tasmania for the week was $270 000 or three per cent of the total turnover in the energy market in Tasmania. The majority of this cost occurred in five minutes on Saturday as a result of a shortfall and resulting $10 000/MW price for the lower 6 second service.
Figure 5 Tasmanian volume weighted average frequency control ancillary service prices
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
1.61
1.05
1.06
1.06
10.31
1.05
1.05
1.06
Previous week ($/MW)
3.37
1.05
1.05
1.06
2.06
1.05
1.06
1.07
Tasmania Market cost($1000s)
12
10
10
9
162
34
26
9
% Tasmania of energy market
0.14%
0.12%
0.12%
0.1%
1.93%
0.41%
0.31%
0.11%
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.
