Today reminds us of how it remains a Regional Market, oftentimes

Posted by Paul McArdle Monday, October 27 2014 Topic: Spring 2014 in the NEM

It’s called Australia’s National Electricity Market even thought it covers only about 50% of the geographical area of the country (though it does represent something like 90% of electricity consumption).

Today’s colourful snapshot from NEM-Watch this afternoon reminds us that it often devolves to a series of regional markets linked by constrained interconnectors whereby (because local generators have local market power, and demand sees its own localised weather conditions) each region derives its own unique pricing outcomes:

2014-10-27-at-13-45-NEM-Watch-dayofcolour

We will be interested to see how these regional factors unfold over the coming summer (2014-15) period with first gas shipped from Gladstone (perhaps?), a solution closer to the RET Review impasse (wishful thinking?), and more El Nino weather (including bushfires) forecast.

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About the Author

Paul McArdle
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.

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