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Wholesale electricity prices continue to firm modestly as summer transpires:
Weak wind is keeping gas output high and raising the overall price:
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It is important to understand how the AEMO bidding system works. The power supply auction that transpires multiple times per hour has bid stack with renewables at zero, coal in the middle, and gas at the highest cost which sets the price.
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.