September 2023
There was a large drop in average spot prices in all states this month. Electricity contract prices fell late in the month as the mild weather, strong renewable generation and falling gas prices eased pressure on the energy system. Gas prices dropped down to well below $10/GJ, their lowest prices since before the 2022 energy crisis. The long term outlook for the market is looking increasingly uncertain with renewable energy developments not keeping pace with targets, and an expected increase in hot and dry weather not just this year but over the long term.
Recent Highlights
- The Bureau of Meteorology has officially declared an El Nino climate event is underway, signalling a hot, dry summer for Australia and an increase in fire danger. ABC
- Strike action by workers at Chevron’s LNG export terminal was called off last minute after a deal was reached between the Unions involved and Chevron. AFR
Renewable Energy News
- A new instantaneous renewable energy generation record was set on Wednesday 2oth September, reaching 70% for the first time. AEMO
- Generation from rooftop solar supplied 39% of demand at the time.
- Curtailment of renewable energy, largely self-curtailment due to negative prices, meant that the peak was less than it could have been. RenewEconomy
Market Reports
