A short article to follow yesterday’s note about spot price volatility in the QLD region on Monday 20th December, this time dropping in this snapshot from the ez2view dashboard time-travelled slightly back to the 18:50 dispatch interval to show ‘end of interval’ values for metered generation output.
Here we can see the price has jumped in NSW coincident with constrained imports from VIC (hence the price separation) and a big drop in solar harvest over 5-minute period. Whilst the drop in solar production is expected, the increase in battery charging is a bit counterintuitive.
See the prices forecast to be high this evening in QLD and NSW … and even VIC and SA as well (notwithstanding Tripwire #1 and Tripwire #2).
One of three founders of Global-Roam back in 2000, Paul has been CEO of the company since that time.
As an author on WattClarity, Paul's focus has been to help make the electricity market more understandable.
A first article on Wednesday 2nd February, looking ahead in the AEMO current forecast to what would be (if the forecast holds) a new record for QLD Region ‘Market Demand’
In this article on Wednesday evening 20th November 2024 we suggest a couple factors to keep an eye on, leading into the expected tight supply-demand balance (and possible load shedding) in NSW on Tuesday 26th November 2024.
1 Commenton "Spot price volatility in QLD (and NSW) on Tuesday 21st December 2021"
The AER rule change request posted by AEMC today (22 December 2021) may assist to shine a light on why Queensland is seeing such insane wholesale prices compared to the rest of the NEM eg the year-to-date FY22 wholesale electricity price in Queensland is $95.88/MWh which is nearly 50% more than NSW at $65.13 and 3 times more than Tasmania at $27.68/MWh.
The AER’s usual report on individual high price events is no longer fit for purpose and this has been identified by the AER in its point 2 below “The timing and format of reporting, to enable the AER to look at prices more holistically e.g. grouping prices in where there is an observed behavioural trend.”
Posted by AEMC today:
Dear Ms Collyer
Re: Rule change proposal – AER reporting under clause 3.13.7 of the National
Electricity Rules
Please find attached a rule change request proposing amendments to clause 3.13.7 of the
National Electricity Rules (the rules), which relate to AER reporting obligations on significant
price variations and high price events in the National Electricity Market (NEM).
Currently, clause 3.13.7 of the rules places a number of wholesale market reporting
requirements on the AER:
• Reporting quarterly on ‘significant price variations’.
• Reporting on any market condition the AEMC or ACCC asks the AER to report on, if the
AER agrees.
• Reporting on energy 30-minute prices above $5,000/MWh.
• Reporting on ancillary service 30-minute prices above $5,000/MW.
While it is important that the rules require the AER to analyse and report on significant
wholesale price outcomes in the NEM, the AER considers that the current requirements are
overly prescriptive and no longer fit for purpose.
The AER’s proposal is to replace the current rule with a principles-based reporting
framework, supported by AER guidance. The intent is to replace the current clause 3.13.7
with a new, less prescriptive framework for reporting on significant price outcomes. This
would provide flexibility on:
• The prices the AER will report on, to enable the AER to adjust to changing market
conditions without a further rule change.
• The timing and format of reporting, to enable the AER to look at prices more holistically
e.g. grouping prices in where there is an observed behavioural trend.
• The factors the AER must consider in the reports, to tailor reporting to the particulars of
the price events.
Increasing flexibility in this way would ensure the AER’s reporting provides more insightful
analysis into market outcomes and behaviour, supporting the achievement of the National
Electricity Objective.
The AER requests that the AEMC expedite this proposed rule change. The AER considers
this proposed rule change is non-controversial, as it relates specifically to AER reporting
requirements and it is unlikely to have a significant effect on the wholesale electricity market
or the interconnected national electricity system.
Finally, I note the work done at a staff level between the AER and AEMC including meetings
and guidance on the principles-based approach to drafting the amendments. I would like to
thank the AEMC staff for their assistance in developing this rule change proposal.
For any further information please contact Scott Johnston on 08 8213 3426.
Yours sincerely
Justin Oliver
Board Member
Australian Energy Regulator
Sent by email on: 21.12.2021
The AER rule change request posted by AEMC today (22 December 2021) may assist to shine a light on why Queensland is seeing such insane wholesale prices compared to the rest of the NEM eg the year-to-date FY22 wholesale electricity price in Queensland is $95.88/MWh which is nearly 50% more than NSW at $65.13 and 3 times more than Tasmania at $27.68/MWh.
The AER’s usual report on individual high price events is no longer fit for purpose and this has been identified by the AER in its point 2 below “The timing and format of reporting, to enable the AER to look at prices more holistically e.g. grouping prices in where there is an observed behavioural trend.”
Posted by AEMC today:
Dear Ms Collyer
Re: Rule change proposal – AER reporting under clause 3.13.7 of the National
Electricity Rules
Please find attached a rule change request proposing amendments to clause 3.13.7 of the
National Electricity Rules (the rules), which relate to AER reporting obligations on significant
price variations and high price events in the National Electricity Market (NEM).
Currently, clause 3.13.7 of the rules places a number of wholesale market reporting
requirements on the AER:
• Reporting quarterly on ‘significant price variations’.
• Reporting on any market condition the AEMC or ACCC asks the AER to report on, if the
AER agrees.
• Reporting on energy 30-minute prices above $5,000/MWh.
• Reporting on ancillary service 30-minute prices above $5,000/MW.
While it is important that the rules require the AER to analyse and report on significant
wholesale price outcomes in the NEM, the AER considers that the current requirements are
overly prescriptive and no longer fit for purpose.
The AER’s proposal is to replace the current rule with a principles-based reporting
framework, supported by AER guidance. The intent is to replace the current clause 3.13.7
with a new, less prescriptive framework for reporting on significant price outcomes. This
would provide flexibility on:
• The prices the AER will report on, to enable the AER to adjust to changing market
conditions without a further rule change.
• The timing and format of reporting, to enable the AER to look at prices more holistically
e.g. grouping prices in where there is an observed behavioural trend.
• The factors the AER must consider in the reports, to tailor reporting to the particulars of
the price events.
Increasing flexibility in this way would ensure the AER’s reporting provides more insightful
analysis into market outcomes and behaviour, supporting the achievement of the National
Electricity Objective.
The AER requests that the AEMC expedite this proposed rule change. The AER considers
this proposed rule change is non-controversial, as it relates specifically to AER reporting
requirements and it is unlikely to have a significant effect on the wholesale electricity market
or the interconnected national electricity system.
Finally, I note the work done at a staff level between the AER and AEMC including meetings
and guidance on the principles-based approach to drafting the amendments. I would like to
thank the AEMC staff for their assistance in developing this rule change proposal.
For any further information please contact Scott Johnston on 08 8213 3426.
Yours sincerely
Justin Oliver
Board Member
Australian Energy Regulator
Sent by email on: 21.12.2021