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Spot price averages at Benmore were $206 on Friday, $245 on Saturday, and $202 on Sunday. 

 This blog post follows on from Hedging Fundamentals Part 1 and answers "Why are spot prices in the NZ wholesale electricity market so volatile?"

Spot prices continued their upward trend.

Spot prices at Otahuhu spiked at $616 yesterday. Wind generation averaged 278 MW. 

Average prices increased by 21.4% at Benmore, increased by 21.6% at Islington, increased by 22.9% at Haywards and increased by 23.8% at Otahuhu over the last week. Total Storage decreased to 1,839 GWh.

Prices yesterday averaged $344 at Benmore, $351 at Haywards, and $359 at Otahuhu. Wind generation averaged 82 MW.

Total storage decreased 93.4 GWh over the last week. South Island controlled storage decreased 5.1% to 1,408 GWh; South Island uncontrolled storage decreased 2.9% to 207 GWh; with Taupo storage decreasing 8% to 131 GWh.

Average prices decreased by 29.3% at Benmore, decreased by 29.8% at Islington, decreased by 31.8% at Haywards and decreased by 32.6% at Otahuhu over the last week. Total Storage decreased to 1839 GWh. NI storage decreased by 6 %  to 142 GWh while SI storage decreased by 8% to 1697 GWh.

Total storage decreased 149.5 GWh over the last week. South Island controlled storage decreased 6.4% to 1,484 GWh; South Island uncontrolled storage decreased 15.5% to 213 GWh; with Taupo storage decreasing 5.7% to 142 GWh.

Spot price averages exceeded $310/MWh yesterday. Wind generation averaged 72 MW.  

Spot price averages at Benmore were $274 on Friday, $288 on Saturday, and $234 on Sunday. 

What’s behind the high spot prices? We take a more detailed look at who is setting prices, when and why.

Total storage decreased 206.2 GWh over the last week. South Island controlled storage decreased 6.2% to 1,586 GWh; South Island uncontrolled storage decreased 18.2% to 252 GWh; with Taupo storage decreasing 23.1% to 151 GWh.

Spot price averages at Benmore were $267 on Monday and $403 yesterday. Wind generation averaged 76 MW on Monday and 26 MW on Tuesday.

Average prices increased by 40% at Benmore, increased by 39.1% at Islington, increased by 40.3% at Haywards and increased by 39.7% at Otahuhu over the last week. Total Storage decreased to 2,195 GWh. NI storage decreased by 9 %  to 196 GWh while SI storage decreased by 1% to 1,999 GWh.

There were no FPVV contracts traded over the last month, so the FPVV index goes sideways this month, i.e. it defaults to last month's value of 10.2 c/kWh. Strong CFD growth has brought the main index up to 12 c/kWh. 

 Total storage decreased 39.2 GWh over the last week. South Island controlled storage decreased 2.1% to 1690 GWh; South Island uncontrolled storage increased 6% to 309 GWh; with Taupo storage decreasing 9.4% to 196 GWh. 

Prices yesterday averaged $150 at Benmore and Otahuhu, with $151 at Haywards. Wind generation averaged 351 MW. 

Average prices decreased by 28.7% at Benmore, decreased by 28.7% at Islington, decreased by 27.7% at Haywards and decreased by 25.5% at Otahuhu over the last week.  Total Storage increased to 2,234 GWh. NI storage decreased by 12 %  to 217 GWh while SI storage increased by 4% to 2,018 GWh.