Spot prices for the week averaged between $129/MWh in Tasmania and $260/MWh in New South Wales with new record demand occurring in both regions. Record winter demands also occurred in Victoria and Queensland. National demand reached a new high of 32 688 MW on Thursday. Prices in New South Wales exceeded $5000/MWh during the evening peak on two consecutive days, with those extreme prices reflected into Queensland and the Snowy region.
The AER has published a separate report detailing the circumstances leading to the spot price exceeding $5000/MWh throughout June.
Turnover in the energy market in the ended 23 June was $971 million. The total cost of ancillary services for the week was $785 000, or 0.1 per cent of energy market turnover.
Significant variations between actual prices and those forecast 4 and 12 hours ahead occurred in 276 instances or 82 per cent of all trading intervals. Demand forecasts produced 4 and 12 hours ahead varied from actual by more than 5 per cent in a fifth of all trading intervals across the market.
The Australian Energy Regulator welcomes comments on the information contained in, or the layout of, the report. Comments should be sent to AER, GPO Box 922, Adelaide SA 5000 (email AERInquiry@aer.gov.au; fax (08) 8213 3414).
Figure 1 sets out national demand and spot prices in each region for each trading interval. Figure 2 compares the volume weighted average price with the averages for the previous week and the same quarter last year. Figure 3 compares the weekly price volatility index on the same basis.
Figure 1 National demand and spot price all regions
Figure 2 Volume weighted average spot price for energy market ($/MWh)
Maximum spot prices for the week ranged from $1681/MWh in South Australia to $8086/MWh in Queensland.
At around 6.30 pm on Tuesday evening, NEMMCO issued a notice forecasting low reserves for New South Wales for the trading intervals ending 6.30 pm and 7.00 pm.
The total cost of ancillary services on the mainland for the week was $386 000 or 0.04 per cent of the energy market.
Figure 4 summarises the volume weighted average prices and costs for the eight frequency control ancillary services across the interconnected regions.
Figure 4 Volume weighted average frequency control ancillary service prices (excluding Tasmania)
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
0.93
0.44
1.83
8
0.09
0.16
0.53
1.74
Previous week ($/MW)
1.87
0.76
2.32
6.02
0.11
0.05
0.68
1.63
Last quarter ($/MW)
1.76
0.73
1.15
1.54
0.39
2.28
5
1.93
Market cost($1000s)
37
17
112
188
0
0
4
28
% of energy market
0.01%
0.01%
0.01%
0.02%
0.01%
0.01%
0.01%
0.01%
The total cost of ancillary services in Tasmania for the week was $399 000 or 1.3 per cent of the turnover in the Tasmanian energy market. On Tuesday, the price for the lower 6 second service reached $10 000 MW as a result of a shortfall for that service. This followed a step change in Basslink.
Figure 5 Tasmanian volume weighted average frequency control ancillary service prices
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
13.97
1.85
2.14
7.9
22.42
2.07
1.98
1.69
Previous week ($/MW)
15.93
1.78
2.12
5.96
0.21
2.48
2.07
1.82
Last quarter ($/MWh)
4.97
0.49
2.93
3
12.67
0.43
0.82
0.45
Tasmania Market cost($1000s)
22
9
16
22
188
72
63
8
% Tasmania of energy market
0.07%
0.03%
0.05%
0.07%
0.61%
0.23%
0.21%
0.02%
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.
