Cutting through the noise
Spot prices are the mechanism by which the energy market signals the needs of the power system to participants, investors, and consumers. So when we see something strange occurring in the behaviour of spot prices, it warrants attention. In this article we examine how spot prices are becoming more ‘noisy’ (ie, they are oscillating more frequently). We present analysis of spot price noise, some preliminary theories about what is causing it, and what […]
Stress-testing the NEM
Stress-testing the transitioning grid Late last year we published a piece examining the importance of weather and stochastic variables to price outcomes. Since then, we have repeatedly been asked to explain how these stochastic variables behave, their influence on price outcomes, and the broader implications for the grid. We have been uplifting our own capabilities […]