A brief reminder about the complexity of measuring ‘Demand’ …
There’s essentially three measures of demand that are commonly talked about, and they are not really interchangeable.
energy literacy
An inter-regional interconnector refers to *the whole of* the transmission path between RRNs
We already noted this a few times recently, but we thought it would be worth separating out as its own article under the ‘Energy Literacy’ category, as it’s likely we’ll be referring back to it increasingly in future.
How dispatch works … it’s much more than just a bid stack
New guest author, Ryan Esplin progressively builds a more precise model of the NEMDE dispatch process to illustrate why the stylised ‘Merit Order’ bid stack model is increasingly not enough to explain dispatch and price outcomes in the NEM
Bye X5, Hi X5
From 16th March 2023 the infamous ‘x5 constraint’ has been split into two. We quickly showed previously that the design of the Left Hand Side (LHS) does not vary. In today’s article, valued guest author Allan O’Neil takes a look at what is different.
Analytical challenge (or beginner mistake!) – understanding the difference between a MW and a MWh
Reposting a portion of an article we published some years ago, to help readers understand the difference between a MW and a MWh.
Interconnector constraints and limits–an explainer, and a few traps
Limits on interconnectors play a key role in setting regional prices in the NEM. Marcelle finds a number of traps when interpreting the market data.
Explaining dispatch (and price setting) regarding Eraring Unit 2 on 30th May 2022
A question on Twitter from Benny Beatts (about dispatch of Origin’s Eraring unit 2 on Monday 30th May) illustrates why price setting is not as simple as adding up bids that are dispatched.
Who gets to run when everyone bids the same? A crash course in disorderly bidding and tie-breaking
Marcelle explores the little-understood concept in NEM dispatch of the tie-break principle, using the new ‘Constraint Dashboard’ widget in ez2view.
How does a wind or solar farm make money?
This is the third of a short series of video snippets extracted from the 17th September 2020 presentation by Marcelle Gannon and Jonathon Dyson for the Clean Energy Council entitled ‘Maximising Profitability in the NEM’ for Wind Farms.
Constraint Case Study Followup – Early outcomes of the new “X5 constraint”
On 25th November, guest author Allan O’Neil examined the ‘X5 Constraint’. Two weeks of operation have passed, so now Allan reviews some of what’s happened.
Do you know your obligations as a Semi-Scheduled Generator?
This is the first of a short series of video snippets extracted from the 17th September 2020 presentation by Marcelle Gannon and Jonathon Dyson for the Clean Energy Council entitled ‘Maximising Profitability in the NEM’ for Wind Farms.
Case Study – How to interpret a new NEM constraint and guess what it might do
Given the great interest in the new ‘X5 constraint’, guest author, Allan O’Neil, has invested some time to pick the new constraint equation to understand (and then explain) what it is, how likely it will be to bind, and who is likely to be affected.
What’s “Primary Frequency Response” and why does it matter anyway?
Paul McArdle recently drew my attention to a short Twitter thread started by David Osmond on the arcane topic of NEM system frequency behaviour: At Paul’s invitation I’ve dived further into this issue to fill in some background, provide…
How Retailers Use Contracts to Hedge Customers
Guest author, Warwick Forster, provides an explanation of some of the common ways that retailers hedge their risk exposure in the National Electricity Market
More on those negative prices – how do contracts affect bidding behaviour?
Guest author Allan O’Neil provides this handy explainer on how generators’ contract positions affect their bidding decisions and can make negative spot prices pay off, at least in the short term. Very useful for those readers not actively involved in wholesale trading in helping to understand why some conspiracy theories might not match reality.
ConfUSEd by the ESOO? You’re not alone.
I’d rather not add to the number of conspiracy theories in circulation, but I wonder if there’s a conspiracy to make understanding our electricity system in general, and its reliability in particular, as difficult as humanly possible. There’s no doubt…
Price Setting Concepts – an Explainer
Guest author, Allan O’Neil, contributes to our series of articles explaining how prices are set the the NEM (as part of how dispatch works). In this article, Allan explains some of the details in the AEMO’s “Price Setter” file.
My recent presentation: “Power system control or market control of a power system”
Guest presenter, Kate Summers, spoke at UoM Climate and Energy College on 15th August 2018, with the presentation recorded. Kate shares this today with WattClarity readers.
Different approaches for dispatch
Highlighting the different approaches taken to cost/price based dispatch in an interconnected electricity system (or market).
Beginner’s Guide to how dispatch works in the NEM, and hence how prices are set
Walking through 5 (much simplified) “Dispatch Intervals” to illustrate some starting principles of marginal price based dispatch arrangements, such as used in the National Electricity Market