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AER’s Q3 wholesale report confirms market transition is well underway

These include:

  • highest ever rooftop solar output in every region, and a 26% increase in total rooftop solar generation compared to same time last year
  • highest ever levels of wind generation in every region, meeting 14% of total NEM demand
  • lowest black coal generation for a Q3 (first time it fell below 50% of total output)
  • lowest Q3 demand for electricity generation in Victoria.

Tasmania again had the lowest average quarterly wholesale price at $27/MWh, the lowest in any region of the NEM since 2012.

Queensland had the highest quarterly average at $90/MWh, followed by NSW ($88/MWh), Victoria ($64/MWh) and South Australia ($63/MWh).

AER Chair Clare Savage said the quarterly results provided stark evidence of the pace of market transition. ‘These up-and-down results tell the story of a changing market,’ Ms Savage said.

‘The mix of generation continues to swing towards renewables with almost 1200 megawatts of new wind, battery and solar capacity entering the market in July, August and September.’

Gas markets experienced unprecedented domestic and international daily price spikes, due to colder July temperatures, supply outages in Victoria and higher global demand.

Ms Savage said increased participation in the spot markets and day ahead auctions indicated a growing maturity of the gas markets.

‘Interlinkages between gas and electricity markets also appear to be increasing, with higher prices paid intermittently for auction capacity this quarter, up to a record $1.70/GJ on pipeline routes servicing gas-powered generators.’

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A quarter of records AER’s wholesale report confirms market transition well underway

Wholesale markets quarterly - Q3 2021