Market Pricing has dropped materially for Q12021, obviously reduced demand during COVID and impacts to business were a major contributor, but more recently:
- La Nina – Much cooler weather during January than is normal
- Unusually good baseload availability – In previous years, the market has had large generation assets come on line coming into major heat waves
- On the few hot days so far, primarily in SA/NSW/VIC, wind has been strong. And the combined heatwave across the NEM peaked on the day between Sunday and Australia Day, so demand subdued compared to normal.
- Increased participation in Demand Response in the market now, so the peak loads on those big days drop off coming into the volatile period
- Solar PV is increasing, which combined with good baseload availability and wind, has significantly reduced demand. e.g. SA demand got as low as 300MW on a day in Q42020 and was completely supplied by the three solar farms in SA
- Snowy Hydro has more water than in previous years, incentivised by earning RECs (currently ~$35/MWh) on top of their pool revenue, has been maximising generation capacity.
#energysavings #renewableenergy #negawattenergy #demandresponse #energyefficiency