02 Aug 2016
Insider 23: What’s Happening with Wholesale Electricity Prices in South Australia?
Are recent market outcomes in South Australia the result of too much wind power, high gas prices and constraints, an interconnector outage, exercise of market power, inadequacies in the market rules and industry structure, or perhaps some in combination?
Insider 23: What’s Happening with Wholesale Electricity Prices in South Australia?
The press has been running hot in recent weeks about the state of the wholesale electricity market in South Australia. In this Insider, we examine market data in detail to understand what is happening. While many commentators argue that too much wind power in South Australia is driving extreme prices, the data points to a more complex reality.
The article examines possible factors driving prices including wind power and thermal plant retirement, high gas prices and constraints, an interconnector outage, exercise of market power and possible inadequacies in the market rules and industry structure. Policy prescriptions will depend on the outcome of such analysis.
To read this article, please download the PDF version from the link below.
17 Jun 2016
Insider 22: Re-engineering the NEM within the Half Hour
In this Insider, we look at a current AEMC rule change proposal to introduce optional 5 minute settlement into the NEM.
Insider 22: Re-engineering the NEM within the Half Hour
The AEMC is currently considering a rule change proposal from Sun Metals to introduce optional 5 minute settlement into the NEM. The aim of the rule change is to remove the distorted incentives in the current half hourly settlements and to give market participants clearer and sharper opportunities to respond to market needs.
In this Insider, Hugh Bannister reviews the history of the issue and the current proposal from the point of view of how a control system might be designed and implemented. He specifically addresses some of the concerns that might inhibit the introduction of such a change including its impact on metering, on contracting and on AEMO and participant systems generally.
The article concludes that the proposal, with some small but significant adjustments, could be implemented relatively easily and quickly. It also highlights the fact that Frequency Control Ancillary Services (FCAS) could also evolve to smooth operations within the half hour and within the 5 minutes as fast response technologies such as batteries become more significant.
To read this article, please download the PDF version from the link below.
21 May 2016
Insider 21: How will energy storage impact the National Electricity Market?
In this edition of IES Insiders we consider what impact energy storage will have on the National Electricity Market (NEM) over the next fifteen years.
Insider 21: How will energy storage impact the National Electricity Market?
In this edition of IES Insiders we consider what impact energy storage will have on the National Electricity Market (NEM) over the next fifteen years. The focus of our analysis is on storage systems installed at residential and commercial premises. Take-up forecasts of energy storage are modelled in a wholesale market simulation tool. The results show the impacts that energy storage will have on wholesale prices, the generation mix, and greenhouse gas emissions.
To read this article, please download the PDF version from the link below.
09 Dec 2015
Insider 20: Innovating in the Electricity Market
In this Insider article Hugh Bannister, Chairman and CEO of IES and an old hand in the market, lists his Top Seven desirable fixes.
Insider 20: Innovating in the Electricity Market
The National Electricity Market was conceived and designed around twenty years ago. At the time, it was a small miracle of both technical and institutional innovation. Like Ford’s model T, it’s been tweaked in many ways since then but under the hood it remains much as it always has been. It is badly in need of an update to deal with the world as it will soon become.
The challenges are known – the rise of distributed generation and storage, the impact of government policy on renewables and emissions, customer incentives created by skyrocketing retail electricity tariffs and the challenges all this poses for established networks, generation, retailers and customers. AEMC and AEMO are busy peering into this uncertain future and contemplating responses.
In this Insider article Hugh Bannister, Chairman and CEO of IES and an old hand in the market, lists his Top Seven desirable fixes.
03 Jun 2015
Insider 19: Will Energy Storage Arrive Sooner with Demand Charges?
In this edition of IES Insider we consider the electricity tariff arrangements that a home equipped with energy storage and solar PV is likely to receive.
Insider 19: Will Energy Storage Arrive Sooner with Demand Charges?
In this edition of IES Insider we consider the electricity tariff arrangements that a home equipped with energy storage and solar PV is likely to receive. We address the question of cost reflective pricing and whether the consumer will be better off with demand charge pricing, or existing pricing structures such as time-of-use.
Why does this matter?
Electricity tariff structures will have a significant impact on the viability and future take up of energy storage technologies. This article presents the results of a recent analysis by IES which tests the proposition that battery storage will become economically viable sooner under a demand tariff.
Please download our latest Newsletter for the full article.