Explaining what demand would look like on a renewable-heavy NEM to a wider audience

A previous article written by our CEO, Paul McArdle for WattClarity has recently been published on RenewEconomy.

Paul is booked in to speak at the 2015 All Energy conference about what role Demand Response might play in a future environment where intermittent generation sources supply a significantly higher percentage of the energy mix in the NEM.

In his article, Paul notes assumptions about consumption, the network and supply before going on to model a load duration curve.

DurationCurveUnservedNativeDemand03peak

Helping to explain winter peak demand, and price volatility, to a wider audience

Cold weather during June 2008 saw electricity consumption soar in the Queensland region of the National Electricity Market – delivering some spot price volatility.

Seeking some insights into what was happening in the market at the time, we fielded calls from journalist Duncan Hughes (of the AFR).  Our CEO (Paul McArdle) assisted by

In his article “Power prices put business on back foot” Duncan quotes Paul as explaining one of the causes:

“demand was growing at 100MW every five minutes, which … necessitated … NEMMCO to schedule more expensive (peaking) generation as a temporary measure to meet high anticipated growth rate in demand…”

Duncan also quoted Paul as noting how demand response was active in response to the price spikes.

Providing insights into massive demand’s impact on prices

Nigel Wilson from The Australian sought insights to explain ‘overheating’ electricity prices during the later part of summer in 2008. Nigel begins his article by stating:

“RECORD electricity demand in sweltering Victoria and South Australia yesterday pushed short-term prices close to the capped maximums, making a rise in wholesale and contract prices likely.”

And compiled insights from our CEO, Paul McArdle:

“Paul McArdle of electricity market monitor, Global-Roam, said the massive demand had had a big impact on prices.” going on to state “Global-Roam’s indicators show that by mid-afternoon there were substantial flows of electricity into Victoria from NSW, Tasmania and from Snowy Hydro.”

Explaining how a power upgrade delay may cost energy users billions

Our CEO, Paul McArdle has provided insights to Duncan Hughes from the Australian Financial Review in regards to how a power upgrade delay may cost energy users.

The article begins:

“DEFERRING until 2015 a $120 million upgrade of an electricity interconnector between Queensland and NSW will cost energy users about $5 billion in higher charges, major energy users say.

They claim an arcane formula – called the regulatory test – used to assess the merits of boosting the interconnector fails to take account for the real impact of the outcome on their costs.”

With the author quotes Paul commenting on the situation’s effects:

“Paul McArdle, managing director of market monitor NEM-Watch, said higher generating prices in summer peak periods would raise costs by $690 million a year, or about $5 billion for the next seven years.”

2008-03-13-the-afr

Journalist refers to Global-Roam to provide an explanation for supply shortage

Rod Myer from The Age has sought insights from Global-Roam to help explain the fragility of Australia’s power supplies after electricity prices in New South Wales and Queensland spiked to nearly the limit – $10,000 per megawatt hour. In his article, he refers to Global-Roam to explain the reason for the supply shortage:

Generation cuts in very hot conditions led to record demand levels for the second day in a row.

So dire was the situation in NSW that in mid-afternoon generation output, at just over 10,000 megawatts, was over 200 megawatts below demand.

The shortage appears to have been caused by plant failure and planned outages in NSW and Queensland. About 700 megawatts of production appeared to drop out in both states, according to information from power market software producer Global-Roam.