A short note this afternoon to highlight that AEMO has published three short 1-page reports with estimates of the Reserve Trader (i.e. RERT) payments made prior to and during the Market Suspension that began on Wednesday 15th June 2022:
| Day | Report | Costs |
|---|---|---|
Tuesday 14th JunePrior to suspension |
This report is here:
|
On Tuesday 14th June 2022 we noted about the dispatch of RERT in these articles on WattClarity: 1) Late Tuesday afternoon we noted ‘RERT in QLD and NSW…’ about entering into reserve contracts for each region. 2) … and later we noted ‘RERT dispatched in NSW on Tuesday evening’. The AEMO report notes: ‘AEMO activated reserves due to a forecast Lack of Reserve (LOR) Condition 3’ This report estimates payments in NSW at $21,600,000 for 900MWh of response … equating to a per unit cost of $24,000/MWh (well above the Market Price Cap). Interestingly, the AEMO report does not speak about any availability payment made to the RERT entit(ies) in QLD that were not dispatched on that day? |
Wednesday 15th JuneDay of the Suspension |
This report is here:
|
On Wednesday 15th June 2022 we noted about the dispatch of RERT in these articles on WattClarity: 1) On Wednesday evening we noted ‘RERT dispatched in NSW – at 17:30’. 2) … and then we noted ‘RERT dispatched in QLD – at 18:00’. The AEMO report notes: ‘AEMO activated reserves due to forecast Lack of Reserve (LOR) 2 and 3 conditions’ This report estimates payments in NSW and QLD as follows: 1) In NSW $30,077,727 for 1,483.5MWh of response … equating to a per unit cost of $20,275/MWh (so lower than the previous day … but still well above the Market Price Cap). 2) In QLD $4,218,891 for 241MWh of response … equating to a per unit cost of $17,506/MWh (lower than either day in NSW, and ‘only’ ~$2,000/MWh above the Market Price Cap). 3) In aggregate $34,296,618 for 1,724.50MWh of response … equating to a per unit cost of $19,888/MWh.
|
Friday 17th June, into SaturdayDuring suspension |
The report is here:
|
On Friday 17th June into Saturday morning, we noted about the dispatch of RERT in these articles on WattClarity: 1) On Saturday morning looking backwards we noted ‘RERT dispatched through Friday night in NSW’. The AEMO report notes: ‘AEMO activated reserves due to a forecast Lack of Reserve (LOR) Condition 2.’ This report estimates payments in NSW of $29,910,699 for 1,416.83MWh of response … equating to a per unit cost of $21,111/MWh (so lower than the previous day … but still well above the Market Price Cap).
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Nothing further, at this point
So…at a time at which in-market participants were only entitled to $300/MWh and/or their direct costs, out-of-market resources could earn around $20,000/MWh. Does this feel right?