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Despite electricity shortfalls forecast in Queensland and New South Wales last night, AEMO successfully directed generators, which hadn’t bid into the market, to be available.
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As such, there was sufficient electricity supplied to meet consumer demand.
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These electricity shortfalls primarily relate to generators revising their market availability in response to administered wholesale electricity price caps. In addition, there are generation units offline for maintenance, along with influencing factors, such as higher energy-related commodity prices.
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Today, AEMO continues to encourage generators across the NEM through our lack of reserve (LOR) notices in Queensland, New South Wales, Victoria and South Australia to bid their availability into the market, rather than being directed to do so.
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Please note that the current forecast LOR3 conditions do not reflect the intervention options that AEMO has taken, including directing generators to be available to supply electricity into the NEM. The reserve forecasting process is automated based on bids received at the time of issuing the forecast.
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Wholesale electricity prices remain capped in Queensland, New South Wales, Victoria and South Australia, due to wholesale prices reaching the cumulative high price threshold. The price cap will remain until cumulative wholesale electricity prices fall below the cumulative price threshold.
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AEMO, as the national power system operator, will continue to monitor the situation and provide further updates should conditions change.
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In the gas markets, the Victoria Declared Wholesale Gas Market (DWGM) remains capped at $40/GJ after reaching the cumulative high price threshold on 30 May.
Please refer to the Lack of Reserve (LOR) fact sheet. Further information regarding administered pricing is available on the AEMO websiteand information regarding the compensation guideline is available on the AEMC website.
ENDS
For NEM wholesale electricity prices, the cumulative price threshold is $1,359,100 over a 7-day period (2016 trading intervals). This triggers an administered price cap of $300/MWh under the National Electricity Rules.