Spot prices for the week averaged between $129/MWh and $386/MWh across all regions with another new record demand in New South Wales on Wednesday. Prices in New South Wales exceeded $5000/MWh during the evening peak on three consecutive days, with the extreme prices reflected into Queensland and the Snowy region.
The $5000/MWh events throughout June resulted in some of the highest prices since the start of the NEM in 1998. June averaged prices were $274/MWh in New South Wales, $216/MWh in Queensland, $157/MWh in Victoria and $111/MWh in South Australia. By comparison prices in June 2006 ranged from $26/MWh to $42/MWh.
The price events also contributed to the highest annual prices in New South Wales and Victoria since the start of the NEM. The average price for the 2006-07 financial year was $67/MWh in New South Wales and $61/MWh in Victoria compared to the previous highest prices of $46/MWh and $49/MWh respectively.
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 week ended 30 June was $1.3 billion, exceeding the previous high of $1.1 billion reached two week earlier. The total cost of ancillary services for the week was $621 000, or 0.05 per cent of energy market turnover.
Significant variations between actual prices and those forecast 4 and 12 hours ahead occurred in 266, or 79 per cent of all trading intervals. Demand forecasts produced 4 and 12 hours ahead varied from actual by more than 5 per cent in a fifth of all trading intervals across the market. These variations were most frequent in South Australia, occurring in over a third of all trading intervals.
The Australian Energy Regulator welcomes comments on the information contained in, or the layout of, the report. Comments should be sent to AER, GPO Box 922, Adelaide SA 5000 (email AERInquiry@aer.gov.au; fax (08) 8213 3414).
Figure 1 sets out national demand and spot prices in each region for each trading interval. Figure 2 compares the volume weighted average price with the averages for the previous week and the same quarter last year. Figure 3 compares the weekly price volatility index on the same basis.
Figure 1 National demand and spot price all regions
Figure 2 Volume weighted average spot price for energy market ($/MWh)
The total cost of ancillary services on the mainland for the week was $372 000 or 0.01 per cent of turnover in the energy market. The loss of a Queensland power station was deemed a credible contingency on Saturday 30 June. NEMMCO invoked a number of constraints to cover this risk resulting in the raise 6 second price increasing to above $1000/MW.
Figure 4 summarises the volume weighted average prices and costs for the eight frequency control ancillary services across the interconnected regions.
Figure 4 Volume weighted average frequency control ancillary service prices (excluding Tasmania)
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
3.08
0.31
0.93
6.96
0.08
0.17
0.72
2.19
Previous week ($/MW)
0.93
0.44
1.83
8
0.09
0.16
0.53
1.74
Last quarter ($/MW)
1.76
0.73
1.15
1.54
0.39
2.28
5
1.93
Market cost($1000s)
110
9
53
151
0
1
12
35
% of energy market
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
0.01%
The total cost of ancillary services in Tasmania for the week was $249 000 or 0.8 per cent of the turnover in the Tasmanian energy market.
Figure 5 Tasmanian volume weighted average frequency control ancillary service prices
Raise
Lower
6 sec
60 sec
5 min
Reg
6 sec
60 sec
5 min
Reg
Last week($/MW)
22.14
1.95
4.75
7.78
0.5
1.92
2.09
2.11
Previous week ($/MW)
13.97
1.85
2.14
7.9
22.42
2.07
1.98
1.69
Last quarter ($/MWh)
4.97
0.49
2.93
3
12.67
0.43
0.82
0.45
Tasmania Market cost($1000s)
68
21
45
34
2
35
35
9
% Tasmania of energy market
0.23%
0.07%
0.15%
0.12%
0.01%
0.12%
0.12%
0.03%
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.
