The first week of Winter in South Australia saw an increase in wholesale market electricity pool (spot) prices with very low wind on all but three days of the week. The week started with almost no wind generation but on Wednesday 6th June the wind came back displacing interconnector imports and a large amount of the gas generation, particularly the Open Cycle Gas Turbines (OCGT). On Thursday 7th of June as the wind picked up […]
The last week of Autumn 2018, over the period from Sunday 27th May to Saturday 2nd June, has been very interesting for explaining South Australian electricity price action as it was a great example of how generation mix and price change with changes in wind generation. The week was characterised by modest demand throughout the week and a drop off in wind generation in the second half of the week. Overall, electricity prices were relatively […]
This last week ending Saturday 26th May in South Australia, we saw Pelican Point re-joining the party, albeit only dropping in for a short “drink”.
Based on the data, it appears that the Pelican Point Power Station started up one of their units, after more than one month off, on 24th May. This appears to have helped reduce the spot price and also led to electricity starting to be exported from SA to Victoria.
The chart below […]
The month of April 2018 saw an increase in the average SA electricity pool price due to a number of high price spikes on the 26th April. The average was $98.37/MWh for the month compared with the previous month of March at $80.70/MWh.
As an end-user exposed to the pool price, with the ability to curtail load in the event of high price spikes, we are interested in the underlying half-hour spot price action and not […]
The traditional approach to buying electricity has simply been to see it as any other purchase: businesses would try to secure a good price and good terms, but there was little or no thought given to energy as a strategic issue, despite its importance to many businesses. But the traditional approach to buying electricity almost guarantees locking in much higher electricity costs than can be achieved with the more modern, innovative and sophisticated methods we […]
This post is taken from Chapter 3 of my new book Power Profits – A Comprehensive 9-Step Framework For Reducing Electricity costs and Boosting Profits.
A framework provides structure, logic, and a sequential process that can be followed by anyone. This 9-Step Electricity Cost Reduction Framework has been used successfully in businesses in which I have had the responsibility for managing the operations, as well as in client businesses where I have assisted in helping […]
This is the last of an initial series of articles about the opportunities for end users in the mainland regions of the National Electricity Market to save costs by purchasing electricity at pool prices and adopting a Demand Response strategy to save more. The previous articles can be found through the following links for South Australia, Queensland and New South Wales. This week we have a look at the opportunity in Victoria.
In my previous articles on electricity pool pass-through and Demand Response (see articles for SA,QLD, NSW and VIC) I presented historical pool price data over the last two years and compared that with indicative retail pricing to indicate the size of the cost saving opportunity.
In this article I present how a pool pass-through plus demand response strategy would have performed for different load profiles in the first quarter of 2016 for the mainland States. I […]
Last month I wrote about what happened with pool prices over 2014-15 in South Australia and Queensland and the opportunity for savings with pool price pass-through strategy and DSM. This week we will have a look at the opportunity in NSW based on 2014-15 historical data.
Table 1 shows that NSW and VIC have been the two regions that have consistently had the benefit of relatively low and stable prices over the last, almost […]
In early February I wrote this article about the electricity cost tsunami hitting SA businesses and what they could do to avoid the enormous price increases. I followed this up this month with a review of what January and February would have delivered a spot-exposed business in SA, in terms of benefits.
I received a lot of feedback about these articles including questions as to what the minimum load threshold for this strategy to be effective is and would it […]