Adrian Kemp, NERA - Western Australian Electricity Market Trends – Implications for Market and...

Preview:

DESCRIPTION

Adrian Kemp, Director, NERA Economic Consulting delivered this presentation at the 8th Annual WA Power & Gas Conference 2014. The conference represents a timely meeting for the industry to hear about the current changes affecting the WA energy and electricity market. For more information, visit http://www.informa.com.au/wapowerconf14

Citation preview

WA Electricity Market Trends

Implications for Market and Regulatory Reform

Perth

12 March 2014

Adrian Kemp

Director

1

Electricity costs in WA have

increased significantly

2

Similar electricity cost increases

have occurred in other states

New South Wales

South Australia

3

Forecasting demand in the SWIS

has been challenging

MW Maximum Demand – 50% POE

4

Total consumption has increased

in the SWIS

MWh

5

The rapid growth in Solar PV is

unprecedented

6

The way we generate and

consume electricity is changing

1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

NEM commenced

operation

Today

Air-con

1.8 million

households

Air-con

5.4 million

households

PV

2.8 GW

PV

0.1 GW

? ? ?

7

Demand is also difficult to

forecast in the NEM

MW

Maximum Demand NSW – 50% POE

8

SWIS demand by month

9

NEM demand by month

10

Reserve capacity requirement

has outpaced actual demand

MW

WA Reserve Capacity Requirement

11

Capacity and maximum demand has

become disconnected - New South Wales

12

Capacity and maximum demand has

become disconnected – South Australia

13

Thermal generators are exiting and wind

farms are entering

14

Capacity has entered to meet the

reserve capacity requirement

MW

15

Different wholesale price

outcomes in WA and SA

Western Australia

South Australia

16

PVs can change the load profile –

South Australia 2010

41 MW

1000

1100

1200

1300

1400

1500

1600

MW

2010

17

PVs can change the load profile –

South Australia 2010 to 2011

41 MW

172 MW

1000

1100

1200

1300

1400

1500

1600

MW

2010 2011

18

PVs can change the load profile –

South Australia 2010 to 2012

41 MW

172 MW

319 MW

1000

1100

1200

1300

1400

1500

1600

MW

2010 2011 2012

19

PVs can change the load profile –

South Australia 2010 to 2013

41 MW

172 MW

319 MW

435 MW

1000

1100

1200

1300

1400

1500

1600

MW

2010 2011 2012 2013

Contact Us

© Copyright 2013

NERA Australia Pty Ltd

All rights reserved.

Adrian Kemp

Director NERA—Sydney 0406 753 352 adrian.kemp@nera.com