Events of Winter 2002 in the NEM.
About the Author
Paul McArdle
Related Articles
Paul McArdle Mon 4th July 2016
Reviewing Q2 prices – short-term excursion, or more systemic change in pricing patterns?
Some initial analysis about the remarkable pricing outcomes seen across all regions of the NEM through Q2 2016
Paul McArdle Mon 7th September 2020
Diving deeper (part 2), about low demands on Saturday 29th August 2020
Prompted, in part, by yesterday’s record low for Victorian demand, today I have finished off my earlier review of what happened on Saturday 29th August (8 days earlier) when demand levels also dropped in VIC, and right across the NEM.
Paul McArdle Fri 21st July 2006
Winter 2002 – Generator Market Power
From the start of the NEM through until 2001, the NEM was typified by a pricing dichotomy with sustained rock-bottom pricing in NSW, Snowy and Victoria and high and volatile pricing in the extremities (Queensland and South Australia).
In 2001, the QNI interconnection and many generation projects were developed. This led to the convergence of prices between all regions, and the disappearance of price volatility – circumstances that were a real threat to generator profitability.
In response, generators adopted an approach that came to be known as “the economic withholding of capacity” to engineer volatility into the market throughout winter 2002 – and hence higher prices as a result., and generator behaviour.
Paul McArdle Sat 4th July 2020
Saturday 4th July 2020 sees QLD spot prices crunched over long periods of the day, with solar booming
Some quick reflections on a day that saw spot prices in QLD down below $0/MWh for most of the period seeing strong daylight hours, hence strong injections from rooftop PV systems.
Leave a comment