The Australian Energy Regulator has released findings into significant power prices in New South Wales.
The AER released a report after New South Wales energy prices exceeded $5000 per MWh on November 18 last year.
According to the report, New South Wales prices exceeded this threshold meaning the wholesale cost of electricity was much higher than normal, reaching $11,701/MWh for the 3.30pm trading interval.
The AER’s analysis determined that several factors contributed to this price, including generator rebidding in NSW that limited transfers from Victoria across the Victorian-New South Wales (VIC-NSW) electricity interconnector; and the subsequent need to dispatch high priced local electricity generation in NSW to meet demand.
“The high prices were prolonged because the generators reduced the speed with which electricity output could be changed, extending the time the interconnector capacity was reduced,” the AER said.
“Alternative cheaper generation from Queensland could not be sourced as both of the interconnectors connecting NSW to Queensland were already importing electricity at full capacity.”
Read the full report here.