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. Starting from this report, quarterly reports will be 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
- Wholesale electricity prices were lower across most regions, with high-price events caused by heatwaves offsetting downward pressures.
- Industrial customers bought more gas from spot markets while exporters and producers sold more gas through spot markets.
- Forward electricity prices increased in March but remain well below levels observed in 2022.
- NEM demand increased from record lows in Q4 2022 and was similar to Q1 2022 levels.
- Lower gas market demand reduced pressure on gas prices alongside additional gas available due to LNG export train outages.
- Upstream gas market trade remained strong, with transportation capacity won at auction again exceeding the previous quarter's record
- Large-scale solar generation reached record levels of output, averaging over 1,800 MW through Q1 2023.
- Black coal generators offered more capacity in the quarter and more at lower prices compared to Q4 2022.
- Southern gas storage refilled to its highest end of Q1 level since reporting began, which will assist with anticipated tightness of gas supply for Winter 2023.