4 February 2021: Last week, AEMO published the latest Quarterly Energy Dynamics report. Aspects that caught our eye included;
* A 57% fall in average price in South Australia to $29/MWh – with negative prices accounting for $8.7 of those dollars.
* It’s 8 years since SA was the lowest price region; we wonder how many financial models reflect that.
* To make things worse, in the same region ancillary costs for system strength were 91% higher than in 2019.
Modern PPAs usually don’t protect investors against negative prices and ancillary services so assets need to actively avoid them to protect ROIs. Our 24×7 NEM operations centre help our clients do exactly this – whether it’s 2am or 2pm.