The gas spot price is now super-glued to Albo’s failed $12Gj price cap:
The winter power price shock has likely peaked:
The Australian Energy Market Regulator (AEMO) is unequivocal about what needs to happen to prevent a repeat:
AEMO’s Quarterly Energy Dynamics report, released today, highlights the important role of flexible gas-powered generation as the ultimate backstop for the National Electricity Market (NEM) during periods of reduced renewable generation.
During the June quarter, low wind speeds and reduced rainfall in the southern NEM regions saw decreases in electricity supplied from wind (-20%) and hydro (-18%), while gas (+16%) and black coal (+7%) rose, helped by increased availability of Queensland’s black coal-fired generators.
AEMO CEO, Daniel Westerman said: “Colder weather has driven a new record for total electricity demand in the NEM for the June quarter.
“On the east coast we have seen low temperatures and persistent cold snaps, especially in Victoria, which have driven higher morning peak demands through the tail end of autumn and the first month of winter.
“Extended periods of low wind have led to reduced wind generation output which was down 20% from last winter to a quarterly average of 2,657 MW, with wind availability down to their lowest levels since Q2 2017,” he said.
Hydro-generation, which is heavily concentrated in southern states, also generated less during the quarter, averaging 1,607 MW, a reduction of 18% from last year and the lowest output for a Q2 since 2017.
“These market conditions highlight the important role that batteries, pumped hydro and flexible gas generation will play as renewable generation becomes more dominant in Australia’s electricity grids,” Mr Westerman said.
In short, we need more gas. Is anybody listening?
No:
Opposition Leader Peter Dutton has hit out at the “fanatics” on both sides of the energy debate as he seized on new data showing the east coast grid has been heavily reliant on coal and gas during recent winter months because of a lack of wind and sun.
And no:
Federal Labor has been challenged over an AI video mocking Peter Dutton hours after the Queensland premier called a similar video of himself a “turning point for our democracy”.
We need two outcomes:
- more gas storage in southern states;
- domestic reservation or export levies to push more cheap QLD gas into that storage in the off season.
Do that and we will get cheap energy for manufacturing, end the inflation crisis, and put the energy transition back on track.
Anything else is energy superidiocy.
