The AER’s wholesale markets quarterly report analyses trends in the electricity and gas wholesale markets, focusing on the most recent quarter, and alerts participants and stakeholders to issues of concern. The quarterly reports include discussion of prices, demand, generation, contracts, market outlook and new entry and exit. These reports are now more concise and made available sooner after the quarter’s end to address the need for timely market information, including reporting on the impact of the Federal Government’s Energy Price Relief Plan.
Insights
- Electricity spot prices increased from Q1 2023 with the onset of winter, but remained well below Q2 2022 levels
- There were far fewer coal generator outages than in Q2 2022
- With more rooftop solar generation, average electricity demand was lower than Q2 2022 during the day but not in the evening peaks
- Planned electricity network outages contributed to high prices in Queensland, New South Wales and South Australia
- More black coal capacity was offered than a year ago despite Liddell's exit in April
- Electricity price expectations for 2024 increased in Queensland and New South Wales but remain well below levels observed in 2022
- Gas spot prices averaged roughly $14.50/GJ, higher than Q1 but well below prices in Q2 2022
- Longford gas production in Victoria was constrained during May, putting upwards pressure on gas prices
- International LNG prices continued to decline approaching the northern hemisphere summer
- Trade on the Gas Supply Hub has moved towards shorter-term products with little forward trade
- Iona underground gas storage facility in Victoria is nearly full heading into winter, playing a critical role for managing supply-demand shocks over coming months
- After constraints in May, gas pipeline capacity increased in June, supporting strong gas flows south from Queensland