The Whys and Wherefores of High Spot Prices

We’ve been asked many times recently why spot prices are so high, so this has prompted me to finally put fingers to keyboard for another blog.  The spot prices are a function of low hydro storage, restricted fuel supplies, and plant outages.

By Greg Sise, 24 October 2018

Price Spikes Hit the Big Time

Since 23rd May we’ve seen big price spikes, to over $1,000/MWh at Otahuhu for example, consistently during the peak demand at the end of the day.  In this post we take a brief look at what’s causing these spikes.

By Greg Sise, 31 May 2018

End of an Era in Exploration

It’s ironic that this month’s announcement that there will be no new offshore oil and gas exploration permits issued in New Zealand was titled “Planning for the future…”. This announcement was totally out of the blue and if there is a “plan” somewhere, it appears that no one outside of government knows what it is.

Gas versus Coal – ‘Storage Wars’

It’s been a while since our last blog post due to workload and other factors, but it’s a new year and it’s going to be another interesting year in the electricity industry, an industry undergoing change.  In this post we look at the recent announcement by Contact Energy of the sale of the Ahuroa Gas Storage facility to First Gas.

The Cost of Inter-island Power Transfers

I’ve given talks recently at the Energy Trader Forum in Wellington and at the Otago Energy Research Centre’s annual symposium in Dunedin, including an overview of how recent upgrades on the HVDC link have changed the cost of transmission between the islands.

Issue 100 of the Electricity Industry's Best Kept Secret

The majority of direct and indirect participants in the electricity market, from generators and retailers through to large consumers, aren’t aware that there is an essential piece of market intelligence available free on this very web site. And this month we publish it for the 100th time.

1992 Shortage Revisited

With the storage lakes falling fast, it got me thinking about other ‘dry year’ events we’ve experienced, which really helps to put the present, and the market, into context.

Competition, the Internet and the Customer

I was privileged to speak at the Energy Management Association of NZ (EMANZ) annual conference in Wellington last week and showed how market reforms over the last two decades, and now the Internet, are working together to disrupt the retail electricity market.

Should I stay on spot or switch?

After a long period of low spot prices and low volatility in spot prices, hydro storage lakes are emptying out and it’s a timely reminder that the hydro situation can change very quickly. But it raises the question: when spot prices start to rise, should I stay on a spot pricing plan, or should I switch to a fixed price plan?

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