A 30 day trial of the Basslink interconnector commenced on Thursday. Transfer capability into Victoria is initially limited to 280 MW, which is around half of the expected capability, to manage voltage control issues near Georgetown in Tasmania. Average spot prices ranged from a low of $21/MWh in Queensland to $31/MWh in South Australia and Tasmania, with prices generally aligned across all regions from Thursday onwards.
Turnover in the energy market totaled $93 million. The cost of ancillary services for the mainland for the week was around $160 000, or approximately 0.2 per cent of the energy market. In Tasmania the cost of ancillary services totaled $50 000 or 0.9 per cent of turnover.
Significant variations between actual prices and those forecast 4 and 12 hours ahead occurred in 33, or ten per cent of all trading intervals. Demand forecasts produced 4 and 12 hours ahead varied from actual by more than 5 per cent in around a quarter of all trading intervals across the market. These variations were most frequent in South Australia occurring in more than two thirds of all trading intervals.
The AER would welcome comments on the information contained in, or the layout of, the report. Comments should be sent to Peter Adams or Mark Wilson, AER, GPO Box 922, Adelaide SA 5000 (email AERInquiry@aer.gov.au; fax (08) 8213 3414).
Figure 1 sets out national demand and spot prices in each region for each trading interval. Figure 2 compares the volume weighted average price with the averages for the previous week and the same quarter last year. Figure 3 compares the weekly price volatility index on the same basis.
Figure 1 National demand and spot price all regions
Figure 2 Volume weighted average spot price for energy market ($/MWh)
Maximum spot prices for the week reached $73/MWh in New South Wales and $63/MWh in Queensland at 1pm on Friday afternoon. Spot prices reached $199/MWh in Victoria, $218/MWh in South Australia and $184/MWh in Tasmania all at 4.00pm on Friday.
There were no Low Reserve Conditions forecast throughout the week.
The total cost of ancillary services on the mainland for the week was $163 000 or 0.2 per cent of the total turnover in the energy market.
Figure 4 Volume weighted average frequency control ancillary service prices (excluding Tasmania)
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
0.75
0.49
0.87
0.38
0.19
0.3
0.84
1.18
Previous week ($/MW)
0.82
0.56
1.49
0.73
0.19
0.22
0.84
1.5
Last quarter ($/MW)
1.76
0.73
1.15
1.54
0.39
2.28
5
1.93
Market cost($1000s)
34
22
55
8
1
2
17
25
% of energy market
0.04%
0.03%
0.06%
0.01%
0%
0%
0.02%
0.03%
On Thursday, a 30 day trial of Basslink commenced, which allows energy and some ancillary services to be shared across the interconnector. From that time, the requirement for ancillary services varied considerably with changes to flows on the interconnector. The total cost of ancillary services in Tasmania for the week was around $49 000 or 0.90 per cent of the total turnover in the energy market in Tasmania.
Figure 5 Tasmanian volume weighted average frequency control ancillary service prices
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
2.05
0.3
0.48
0.8
0.29
0.18
0.31
0.44
Previous week ($/MW)
2.54
0.25
0.25
0.26
0.32
0.25
0.25
0.25
Last quarter ($/MWh)
7.89
1.05
1.05
1.58
4.43
1.06
1.06
1.97
Tasmania Market cost($1000s)
16
3
6
5
4
5
7
3
% Tasmania of energy market
28.74%
5.78%
10.34%
9.07%
7.42%
9.81%
13.76%
5.36%
Figure 6 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 7 shows the weekly participation in each of the ancillary service markets on a regional basis.
Figure 7 Regional participation in ancillary services
Figures 8 and 9 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.
