How bidding at Semi-Scheduled units has adjusted for the moving target of ‘negative LGC’
Following a couple articles about the downwards trend of spot LGC price, we look at how that's fed into 'negative LGC' bid prices for VRE.
Bids in ‘blue, green and red’
In Theme 2 within the GRC2018 (published 31st May 2019) we explored several ways in which of “The level of Risk in the NEM is escalating”.
As an illustration of this growing level of risk, we trended the volume of energy bid in various bid ranges, coloured via three broad colour ranges:
Blue = bids from $0/MWh down to the Market Price Floor;
Green = bids from $0.01/MWh to the $300/MWh cap strike price (encompassing the traditional ‘short run marginal cost (SRMC) price range).
Pink and Red = bids above $300/MWh up to the Market Price Cap.
Through these illustrations, we showed a declining percentage of volume ‘bid in green’.
Here we have collated a series of articles about this phenomenon.
Updated trend of ‘ENERGY’ bids in red, green and blue
Last Tuesday 23rd April 2024 I spoke with an audience organised by BofA Securities with respect to ‘Risk, Uncertainty and Volatility in the energy transition’. Here's one illustration of why the spread of spot prices in the NEM has been increasing in recent years.
Prior to the wider release of the GSD2020 … here’s a 10-year trend of bidding behaviour
A chart we threw together quickly at Beer O'Clock today (from the imminent release of the GSD2020) was worth sharing more broadly on WattClarity today...
Longer-term trends of low (and high) dispatch prices in the NEM across all regions.
Our various dashboard views of the NEM (NEMwatch, ez2view and deSide) have been showing what's seemed like increasing numbers of zero and negative prices in the NEM recently - particularly in QLD. Coupled with this we've seen various commentary on social media. Hence we took...