Australian electricity price doubles: CEO explains prices up due to lack of coal power
There’s been mayhem quietly running on the Australian electricity market this month. Shh. April used to be an easy month on electricity markets — it’s not summer and not winter, and nothing is stretched. At least not in theory. But this month prices have been running at $150 – $250 per megawatt hour. This is a big rise, even from last month when prices were often $70 – $120 in the big three states. To put that in perspective, six years ago in March, wholesale electricity prices were a tiny $30 – $60.
Last month a couple of units in a Victorian plant suffered a fire. Then on April 1, a single coal turbine at Liddell was retired, and then there was a wind drought, and now, lo, behold “we have lift-off”! Prices are now consistently running at $200-$300 per MWh, and often spend most of the day above $100. Hey, but it’s only been a few weeks.
Ouch, Ouch, Ouch
AEMO Australian Electricity Prices.
Prices are cooking …. AEMO (Click to Enlarge)
Don’t blame Russia: Less coal, means more expensive electricity.
The headline makes it sound like coal outages are to blame, when really the only thing keeping electricity prices down in Australia are the coal plants:
Domestic gas prices spike in April as coal outages put pressure on markets
Nick Evans, The Australian
https://joannenova.com.au/2022/04/australian-electricity-price-doubles-ceo-explains-prices-up-due-to-lack-of-coal-power/?utm_source=rss&utm_medium=rss&utm_campaign=australian-electricity-price-doubles-ceo-explains-prices-up-due-to-lack-of-coal-power
