- AEMO has been working with governments, industry and generation owners to meet forecast electricity supply shortfalls in Queensland and New South Wales this evening (approximately 5pm to 12am).
- These electricity shortfalls are related to generators revising their market availability in response to administered wholesale electricity price caps ($300 megawatt hour), along with generation unavailability and higher commodity prices.
- Wholesale electricity prices are 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.
- At 3pm, discussions with scheduled generators indicates an estimate of approximately 2,000 megawatts (MWs) of generation in each of Queensland and New South Wales, which hasn’t bid into the market, can be directed by AEMO to be available to help meet forecast electricity shortfalls this evening.
- In addition, AEMO continues to encourage generators to bid their availability into the market with forecast Lack of Reserve (LOR3) conditions tomorrow evening in all regions of the National Electricity Market (NEM).
- AEMO will continue to monitor reserve conditions, providing further updates should conditions change.
- In the gas markets, gas price caps for the Sydney Short Term Trading Markets (STTM) will be removed tomorrow, while the Victoria Declared Wholesale Gas Market (DWGM) will remain capped at $40/GJ after reaching cumulative high price thresholds on 30 May.
Please note that the current forecast LOR3 conditions do not reflect the intervention options that AEMO has taken, including directions to scheduled generation. The reserve forecasting process is automated based on bids received at the time of issuing the forecast. This means that in some cases the capacity of directed units is not shown in reserves until shortly before the effective time of direction.
Please refer to the Lack of Reserve (LOR) fact sheet. Further information regarding administered pricing is available on the AEMO website and information regarding the compensation guideline is available on the AEMC website.
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.