On Tuesday 21 March, Directlink Joint Ventures, in accordance with the AER’s decision of 3 March, ceased its registration as a market network service provider as the asset is now a regulated interconnector. The Directlink interconnector will be known as the Terranora interconnector.
Average spot prices for the week increased to $40/MWh in South Australia where maximum temperatures were above 30 degrees from Thursday, peaking at 35 degrees on Saturday. A single 5 minute price spike on Wednesday of close to $10 000/MWh, also contributed to the increase. Spot prices across the other regions ranged from $16/MWh in Queensland to $29/MWh in Tasmania.
Turnover in the energy market was $85 million. The total cost of ancillary services for the week, including Tasmania, was around $1 million, or one per cent, of energy market turnover. The majority of this cost occurred in forty minutes on Saturday night as a result of requirements for local services in Tasmania.
Significant variations between actual prices and those forecast 4 and 12 hours ahead occurred in 25, or around 7 per cent of all trading intervals. Demand forecasts produced 4 and 12 hours ahead varied from actual by more than 5 per cent in a fifth of all trading intervals across the market. These variations were most frequent in South Australia occurring in more than half of all trading intervals.
The AER welcomes comments on the information contained in, or the layout of, the report. Comments should be sent to Peter Adams or Mark Wilson, AER, GPO Box 922, Adelaide SA 5000 (email AERInquiry@aer.gov.au; fax (08) 8213 3414).
Figure 1 sets out national demand and spot prices in each region for each trading interval. Figure 2 compares the volume weighted average price with the averages for the previous week and the same quarter last year. Figure 3 compares the weekly price volatility index on the same basis.
Figure 1 National demand and spot price all regions
Figure 2 Volume weighted average spot price for energy market ($/MWh)
Maximum spot prices in Victoria and South Australia were $256/MWh and $1644/MWh respectively. Maximum prices across the other regions ranged from $24/MWh in Queensland to $55/MWh in Tasmania. On Wednesday morning the 5-minute price in Queensland fell to the price floor of -$1000/MWh for two dispatch intervals from 9.05 am when network outages in New South Wales led to a 300 MW reduction in export capability from Queensland. This reduction was not forecast.
There were no low reserve conditions forecast for the week.
The total cost of ancillary services on the mainland for the week was around $173 000 or 0.2 per cent of the total turnover in the energy market.
Figure 4 Volume weighted average frequency control ancillary service prices (excluding Tasmania)
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
0.58
0.37
1
0.77
0.17
0.73
1.2
1.11
Previous week ($/MW)
0.42
0.22
0.73
0.7
0.12
0.07
0.25
0.91
Last quarter ($/MW)
1.76
0.73
1.15
1.54
0.39
2.28
5
1.93
Market cost($1000s)
27
17
63
17
1
7
23
18
% of energy market
0.03%
0.02%
0.08%
0.02%
0%
0.01%
0.03%
0.02%
The total cost of ancillary services in Tasmania for the week was $906 000 or 18 per cent of the total turnover in the energy market in Tasmania. At 11.05 pm on Saturday evening, prices for lower 6 second services in Tasmania increased to around $10 000/MW for 40 minutes. This followed a rebid by Hydro Tasmania which reduced the availability of this service at Gordon by 23MW. This rebid resulted in a shortfall in supply for that service. This capacity was restored at 11.36 pm for 11.45 pm. The rebid reasons given were “Hydrological optimisation” and “Co-optimisation of energy & FCAS” respectively. Figure 58 summarises for Tasmania the prices and costs for the eight frequency control ancillary services.
Figure 5 Tasmanian volume weighted average frequency control ancillary service prices
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
1.04
0.8
5.03
2.05
77.21
0.01
0.01
0.41
Previous week ($/MW)
0.9
0.6
2.12
0.98
2.18
0.03
0.11
0.78
Last quarter ($/MWh)
7.89
1.05
1.05
1.58
4.43
1.06
1.06
1.97
Tasmania Market cost($1000s)
6
9
62
7
817
0
0
4
% Tasmania of energy market
0.11%
0.18%
1.21%
0.14%
15.85%
0.01%
0.01%
0.07%
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.
