Australian Electricity Spot Prices Increase: Demand Rises

Average half-hour spot prices in South Australia reached a high of AUS$73 per megawatt hour (MWh) as constraints on the interconnector caused the state to separate from the rest of the market and set its own prices.

In Victoria, New South Wales and Queensland, prices were more subdued, ranging between AUS$18-25 per MWh.

However, the National Electricity Market Management Company (NEMMCO) has forecast prices to fall below AUS$20 per MWh.

"Prices are up a bit today because demand is up. Demand is about 300 megawatts higher in New South Wales today compared to yesterday," a trader said.

It was a quiet day in the forward contract market with no trades reported in the over the counter market, or on Australian Stock Exchange or Sydney Futures Exchange.

Turnover in the Australian electricity market between February 23 and March 7 averaged around A$65 million ($39 million), up from a near record low of A$60 million the previous week, the National Electricity Code Administrator (NECA) said.

Across all regions average spot prices ranged between A$17 per MWh and A$22 per MWh, continuing the low trend of recent weeks despite high demand, NECA said.