With the new financial year well underway, AEMO wraps up the previous quarter and reports on energy market dynamics, trends and outcomes in its second Quarterly Energy Dynamics (QED) report for 2018 (Q2).

This quarterly report covers the period from 1 April to 30 June 2018 and offers observations from both the National Electricity Market (NEM), the Wholesale Electricity Market (WEM), and gas markets operating in Queensland, New South Wales, Victoria, South Australia and Western Australia. The QED compares Q2’s results against other recent quarters, focussing on Q1 2018 and Q2 2017.

A decrease in wholesale electricity and gas prices across most regions compared to the previous quarter was a significant highlight in the QED, with Queensland leading the way.

Reduction in electricity prices in most NEM regions were largely driven by decreased demand associated with warmer temperatures and reduced volatility in Victoria and South Australia. Average quarterly gas price reductions reflected lower Gas Powered Generation (GPG) as a result of these reduced electricity prices.

There was also a continuation of downward price movements for Large-scale Generation Certificate (LGC) spot and forward prices in Q2 2018.

Some key changes in the electricity supply mix compared to Q2 2017 included an upsurge in hydro generation across the NEM by approximately 650 megawatts (MW) and more than 700 MW increase in variable renewable energy generation. This was largely a result of high rainfall in the Tasmanian hydro catchment areas, windier conditions compared to Q2 2017, and newly installed renewable capacity.

Over on the west coast, the energy supply mix in the Wholesale Electricity Market (WEM) in Western Australia remained steady over the quarter and fewer generator outages meant a decrease of the average wholesale electricity prices in both the Short Term Energy Market (STEM) and Balancing Market when compared to Q2 2017 (by $7/MWh and $8/MWh respectively).

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To view the full report, please click here.