Gas power and coal outages lead to big jump in wholesale electricity prices in June quarter

Most states on Australia’s main grid experienced a significant jump in wholesale electricity prices in the June quarter, as record demand driven by cold weather, and a combination of coal outages, and lower wind and hydro output caused a greater reliance on gas, the country’s most expensive power technology.

The latest Quarterly Energy Dynamics report from the Australian Energy Market Operator finds that average prices across the National Electricity Market jumped by one quarter to $133 per megawatt hour (MWh) in the June quarter – the highest since the so-called energy crisis in 2022.

The worst affected state was NSW, which plays host to the biggest grid and the largest fleet of coal fired power generators. It suffered most from a series of coal plant failures in May, network constraints and bidding behaviour by big utilities cashing in on the tight market that resulted in an automatic price cap.

https://reneweconomy.com.au/gas-power-and-coal-outages-lead-to-big-jump-in-wholesale-electricity-prices-in-june-quarter/