Our Monthly Report continues with Spot Market prices where a mild September and high VRE generation brought softening electricity prices, while gas spot prices have fallen to pre-2022 price levels due to soft demand, high production and storage levels, price caps and softer international prices.
Highlights for the month are:
- Softening electricity spot prices across the NEM with Vic recording the lowest average price at $26.31/MWh, and NSW the highest at just $64.54/MWh
- Variable Renewable Generation (VRE) was high across the NEM, contributing to softer prices
- Baseload generation was low in September for all regions as a result of soft demand
- Qld and NSW experienced record negative prices with 29.4% and 14.6% respectively
- Low demand contributed to a low number of $300/MWh pre-dispatch price alerts and the lowest number of actual price outcomes below $300/MWh since Oct-21
- Sep-23 recorded the lowest total energy consumption for the NEM since 2001, with a total of just 14,293TWh
- A new record low for NEM Operational Demand was set on Sunday 17 September of 11,393MW. SA also set record low operational demand of just 21MW on Sunday 17 September
- In generator offers, black coal generators offered less capacity overall during September, while moving offers into the higher price bands. Gas-powered generators also offered significantly less capacity overall, while offers from hydro generators remained at low levels
- FCAS cost were slightly higher than recent months, but remained lower compared to September in past years at $14.5m
- Average daily gas prices fell from around $11/GJ early in September to around $6/GJ at the end of the month. Average prices for the month were around $9/GJ.
- IONA gas storage remains very high compared to historical levels
- Total LNG export flows were at the highest level since Jan-22, with LNG exports totaling 1.83m tonnes for September
