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.

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