LaTrobe Valley Coal Plant

There’s been mayhem quietly running on the Australian electricity market this month. Shh. April used to be an easy month on electricity markets — it’s not summer and not winter, and nothing is stretched. At least not in theory. But this month prices have been running at $150 – $250 per megawatt hour. This is a big rise, even from last month when prices were often $70 – $120 in the big three states. To put that in perspective, six years ago in March, wholesale electricity prices were a tiny $30 – $60.

Last month a couple of units in a Victorian plant suffered a fire. Then on April 1, a single coal turbine at Liddell was retired, and then there was a wind drought, and now, lo, behold “we have lift-off”! Prices are now consistently running at $200-$300 per MWh, and often spend most of the day above $100. Hey, but it’s only been a few weeks.

Ouch, Ouch, Ouch

Prices are cooking …. AEMO (Click to Enlarge)

Don’t blame Russia: Less coal, means more expensive electricity.

The headline makes it sound like coal outages are to blame, when really the […]