This morning the AEMO published it’s Quarterly Energy Dynamics (QED) Q4 2022 report.
What AEMO notes about the report
In this Media Release to accompany the report, the AEMO notes:
Wholesale electricity prices in the National Electricity Market (NEM) averaged $93 per megawatt hour (MWh) during the December quarter, dropping 57% from the September quarter ($216/MWh), but remaining well above the Q4 2021 average of $52/MWh.
AEMO’s Quarterly Energy Dynamics (QED) report shows that average renewable output was the highest on record, peak renewable contribution records continue to be broken, and the overall contribution of both coal and gas fell.
AEMO Executive General Manager Reform Delivery, Violette Mouchaileh, said sustained high commodity prices, upcoming coal unit outages and tight gas supply led to futures prices remaining elevated early in the quarter, before declining through November, and sharply in December.
“Following the Federal Government’s temporary capping of wholesale domestic gas and thermal coal markets on 9 December, ASX Cal23 electricity futures prices saw steep falls in the mainland states through to the end of the quarter,” said Ms Mouchaileh.
“Instances of high price volatility in the December quarter followed a transmission failure in South Australia, which saw the state lose normal connection with the rest of the NEM for a week.”
Early commentary about the release
So far today I have noted the following coverage about the report from a range of sources, including the following:
The Australian Financial Review
Angela Macdonald-Smith wrote “Wholesale power prices sink as wind, solar gain“
The Sydney Morning Herald/The Age
Nick Toscano and Mike Foley wrote “Fossil fuels fall to record low in power grid as renewables hit new high“
Giles Parkinson wrote “Coal states miss out on benefits of cheap wind and solar, pay twice the price of power“
Daniel Mercer wrote “Wholesale power prices fall on renewable energy output to bring consumer relief“