Winter ends with stable electricity prices
Electricity prices across Queensland, New South Wales, Victoria, and Tasmania remained stable throughout August, closely aligning with July levels. Volatility was limited, with sufficient generator availability and the absence of extreme winter weather helping to avoid significant market stress.
The spot price in New South Wales peaked in mid-August at $1,119/MWh. Meanwhile in South Australia, after experiencing significant volatility in early July, saw its average wholesale price fall by half in August, making it the second-lowest priced state for the month.
High FCAS costs in South Australia
To maintain grid stability, the National Electricity Market (NEM) relies on Frequency Control Ancillary Services (FCAS), which ensures generation and load remain in constant balance around the 50 Hz system frequency. FCAS acts as a rapid response reserve, activated to minimise frequency deviations caused sudden generation or load changes. A failure to maintain frequency can lead to cascading outages and black outs.
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