In Queensland, we have observed lower daytime spot prices since the beginning of April, relative to March averages.
Taking a closer look at half hourly average spot prices seen so far in April, we can see that between 8am and 4pm spot prices have been softer than the same periods in March. Following this, spot prices are higher in the evening peak periods. Whilst it is a very small data set, this is the relationship that many in the market expect to evolve.
Softer spot prices in the day will motivate generators to price more aggressively (price higher) in the evening peak to increase earnings which have been lost during the day.
Should we see this evolution of softer spot prices during the sunlight hours of the day, it will put further strain on the Queensland solar industry which has had several setbacks of late.
In addition, we can observe from the below graph that there has been an increase in generation from utility scale solar, in terms of both peak and average generation. The increase in solar is making more low-cost generation available in Queensland. New generation from these solar plants remains insufficient to meet all demand and therefore, solar is not setting prices.
If you have any questions regarding spot prices or any other matter relating to energy, please contact Edge Energy Services on 07 3905 9220 or 1800 334 336.