Catching up on a few tasks overhanging the holiday weeks, we noted how the spot price in South Australia dropped below zero (and almost did the same in Victoria) on an Anzac Day with low demand coinciding with high wind production levels.
Above, for future reference, is a snapshot of the incident in NEM-Watch v9.
Note (highlighted) the significant drop in demand in the Victorian region which contributed to the drop in prices in both regions.
Paul was one of the founders of Global-Roam in February 2000. He is currently the CEO of the company and the principal author of WattClarity. Writing for WattClarity has become a natural extension of his work in understanding the electricity market, enabling him to lead the team in developing better software for clients.
Before co-founding the company, Paul worked as a Mechanical Engineer for the Queensland Electricity Commission in the early 1990s. He also gained international experience in Japan, the United States, Canada, the UK, and Argentina as part of his ES Cornwall Memorial Scholarship.
AEMO has adjusted the formula (i.e. constraint equations) used to manage system strength in South Australia, which has been (since mid-2017) by constraining down the output of wind farms under certain conditions.
On a day when high temperatures drove demand in Victoria above 9,000MW (and NEM-wide demand above 30,000MW) we saw some price volatility – with prices in VIC and SA up around $14,000/MWh
Spot prices in South Australia have been seen to be higher in the month of April than in the prior months, which is somewhat counter-intuitive. Prices also spiked this evening on a number of occasions above $500/MWh – here’s some of the reasons why.
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