Did demand side knock out $12,000/MWh price spike?

On Monday electricity prices in SA and Victoria skyrocketed to over $12,000 per MWh but then quickly subsided after a drop in demand. Could this be a sign of the power of demand-side response?

SMS alerts triggered by NEM-Watch alerted us to the fact, whilst out of the office, that the price was bouncing around in Victoria and South Australia yesterday to levels close to the price cap of $12,500 per megawatt-hour.

Looking backwards from this morning we see that the extent to which prices bounced around yesterday in both regions – triggering what appears to be a significant amount of Demand Side Response in both regions:

The custom chart for Victoria (from ez2view) shows what might be as much as 400MW of DSR on the day:

 

The custom chart for South Australia (from ez2view) shows what might be as much as 150MW of DSR:

 

Rewinding to 16:35 on the previous day through Playback in NEM-Watch we can see that the demand in VIC and SA was relatively high (pushing towards the red zone) as a result of the higher temperatures experienced in those locations yesterday:

Paul McArdle is the Managing Director of Global Roam, an IT software company dedicated to making the energy market understandable.

This article was originally published by Watt-Clarity, Republished with permission.

 

 

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