(Early!) winter evening volatility returns to QLD and NSW on Wednesday 24th May 2023

As has been the case for a number of days recently (like Saturday 20th May), we’re seeing volatility currently in QLD and NSW, as shown in this snapshot from NEMwatch at 17:50:

2023-05-24-at-17-55-NEMwatch-screenshot

 

As per the numbered annotations on the image:

1)  Volatility began at 17:30 with spikes up towards the Market Price Cap and has continued since that time

2)  NEM-wide ‘Market Demand’ is quite modest, at just over 28,000MW

3)  There’s a fair amount of wind production currently (which is different than yesterday)

4)  Prices are split because of constraints on VIC1-NSW1 interconnector … which is being forced to flow south currently, despite the price differential.

5)  The IRPM for the QLD+NSW ‘Economic Island’ is down at only 7% at this dispatch interval:

(a)  With 19,957MW available capacity supplying 18,640MW net ‘Market Demand’ (i.e. including the 275MW export to VIC);

(b)  Leaving 1,317MW spare capacity across NSW and QLD:

i.  at any price.

ii.  some of which might also be constrained.

(c)  Hence 7.07% IRPM before rounding.

6)  There’s an Actual LOR1 condition in the NSW region currently.

 

Nothing more at this point.


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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