This report is the third and final part of our Annual Report series, and focusses on generation, demand and reserve levels. There are 7 components of the report providing a range of insights and conclusions.
As was the case in the previous two sections of our Annual Market Report, Part 1 - Spot Prices and Part 2 - Financial, the impact of the 2022 Energy Crisis upon the third and final installment of our Annual Market Report - Generation and Demand is very evident.
Some of the highlights of the report are:
- New Generation connections in the NEM continued at a steady pace with another 2,386MW added in 2022, maintaining the annual average for the past five years above 2GW
- Following six years of constant growth in new Rooftop Solar PV capacity, new capacity added in 2022 was significantly lower than the previous two years, although is subject to further revision
- Gas generation was substantially higher than in recent years as a result of higher demand during a particularly cold winter and lower coal generation, which contributed to gas supply shortages during the 2022 Energy Crisis
- The reduction in the rate of decline in carbon emissions decreased during 2022 as a result of increased gas powered generation
- Wind and solar generation curtailment continued at very high levels during 2022
- The interconnectors linking the NEM regions were constrained more often during 2022
- Average operational demand and maximum demand levels increased across the NEM in 2022, while minimum demand levels continued to fall
- During the height of the 2022 Energy Crisis, Lack of Reserve (LOR) notices issued by AEMO soared to record levels, with more than four (4) times the previous record set in 2021 following the Callide C4 event
- Improved Spot Price Premium for Wind and Solar Farms across the NEM
- Electricity demand was greatly impacted by weather during 2022, with warmer temperatures in the first half of the year (Summer/Autumn) and lower average temperatures during the second half of the year (Winter/Spring)