Case Study
How we avoid negative pricing
ASSET
Wind
STAGE
Operations
Due to a combination of high renewable penetration and limited interconnection to neighbouring regions, SA regularly experiences negative pricing.
CHALLENGE
Sometimes auto–bidding software is assumed to be infallible, however, Overwatch observed a client’s automated bidding system generating bids causing a $-1,000/MWh cost exposure.
SOLUTION
Overwatch informed the client of its observations, suggested an alternative bidding approach and then implemented the change on the client’s instruction.
Overwatch is well placed to respond to these types of scenarios with experienced Operations Controllers able to see beyond the raw AEMO numbers and to understand why particular outcomes are occurring.
BENEFIT
The client avoided having to pay AEMO to generate, thus reducing its operating costs and increasing profit.
Due to strong industry knowledge and experience Overwatch was also able to provide the client with invaluable feedback on how to improve the auto-bidding software.
