*take nothing for granted!
Unless otherwise indicated all photos © Richard McKie 2005 - 2015

Who is Online

We have 53 guests and no members online

Translate to another language

The National Electricity Market

 

All states except Western Australia and the Northern Territory are connected to the eastern grid and electricity can flow forwards and backwards across state boundaries according to demand and supply.  This pool of suppliers, thus created, forms the National Electricity Market (NEM).  This functions as a central dispatch system and is managed by the Australian Energy Market Operator (AEMO).

The NEM is a wholesale market through which generators and retailers trade electricity. There are six participating jurisdictions (five states and the ACT) linked by transmission network inter-connectors.

The electricity price in this market place is governed by demand and supply within wide limits.

Based on the generator’s offers to supply and the prevailing demand AEMO’s systems determine the generators required to produce electricity based on the principle of meeting the retailers’ demand in the most cost-efficient way. AEMO then dispatches these generators into production.

The dispatch price between the market and generators is struck every five minutes and averaged to the NEM spot price every half hour for each of five generation regions. This price fluctuates very substantially according to season and time of day with additional variability due to sun, wind, or rain and even what’s on TV.

The Australian Energy Regulator monitors the market to ensure that participants comply with the National Electricity Law and the National Electricity Rules.  These rules set a maximum spot price of $12,500 per MWh.  The prevailing weekly spot price can be seen on the AEMO website.   At the time of writing this is averaging $66.52/MWh in NSW post carbon tax.  But this week there were fluctuations as low as $41 and as high as $290.

 

 

Electricity consumption

The industry often tells us about new initiatives in terms of how many households they can support.  But households consume less than a quarter of the electricity delivered in Australia.  Most of the increase in the cost of electricity is borne by industry and commerce.  In due course this cost ends up in our wallets in other ways.

  

Electricity consumption by sector 2009
  Final
Consumption
(GWh)
Residential Commercial
and Public
Services
Industry Transport Agriculture
Forestry & Other
Per Capita Consumption (MWh pa)
Australia                     213,773 22.7% 21.4% 36.0% 1.1% 0.7% 9.43
United   States                   3,642,203 32.3% 31.3% 18.9% 0.2% 3.5% 11.60
Germany                      495,573 24.0% 22.4% 34.8% 2.7% 1.5% 6.05
France                      423,440 33.0% 23.2% 22.4% 2.4% 1.0% 6.48
United   Kingdom                      322,417 32.4% 23.6% 25.9% 2.3% 1.0% 5.18
Spain                      255,368 24.3% 27.9% 33.0% 1.1% 3.0% 5.53
Sweden                      123,374 29.0% 18.9% 36.4% 1.7% 1.3% 12.99
Switzerland                        57,483 27.0% 26.1% 27.5% 4.6% 1.5% 7.23

 Source: IEA - International Energy Agency

Notes:  

  • Since 2009 several Australian aluminium smelters have closed or reduced production.  The proportion or electricity consumed by industry will be less than it was then.
  • Final Consumption is electricity delivered to the home market after imports and exports, losses and the electricity industry's own use have been deducted.
    Australian losses are amongst the highest in the world due to our long transmission distances and our use of pump-storage for load smoothing.

 

 

 

Comments  

# Greg Stace 2012-09-12 14:02
Richard,

I reckon you can produce solar in Australia domestically at around 15c or lower. Installation price at a bit under 2K a kWp and over 1800 hours of sunshine in some places means its well and truly below. Also Aussie electricity is pretty pricey, Dutch business can get it at around 9c a kWh and Swiss ones at 11c (Aussie cents). Zurich, Lichtenstein and Bern household average annual electricity bills are under $200 (retail electricity there is 12c).

check out the table at the bottom of this. http://es.wikipedia.org/wiki/Fotovoltaica to give a price per kWp based on 4% cost of capital, 1% annual maintenance fee over 20 years, depreciation of the equipment over 30 years.
Reply | Reply with quote | Quote

Add comment


Security code
Refresh


    Have you read this???     -  this content changes with each opening of a menu item


Travel

China

 

 

I first visited China in November 1986.  I was representing the New South Wales Government on a multinational mission to our Sister State Guangdong.  My photo taken for the trip is still in the State archive [click here].  The theme was regional and small business development.  The group heard presentations from Chinese bureaucrats and visited a number of factories in rural and industrial areas in Southern China.  It was clear then that China was developing at a very fast rate economically. 

Read more ...

Fiction, Recollections & News

The Soul of the Matter

 

 

 

 

 

 

It's hot, dry and dusty when they finally arrive in Jaisalmer.  But then, how often is it not? 

In the markets a wizened woman of indeterminate age is using a straw broom to aggressively sweep the area in front of her shop. The dust will soon be kicked back by passersby or swept back by her neighbours; requiring her to sweep again and again.  She will do the same again tomorrow; and the day after; and the day after that.

Jennifer's mind is elsewhere. She's has dreamt of visiting exotic India ever since a client at the hairdressers told her, with enthralling details, of her adventures here.

They've arrived in the dusty city in the late afternoon, by road from Jodphur.   In spite of his preference to visit California again, she's finally persuaded Bruce that he might like India and should try something a bit less conservative.

Read more ...

Opinions and Philosophy

A Carbon Tax for Australia

 12 July 2011

 

 

It's finally announced, Australia will have a carbon tax of $23 per tonne of CO2 emitted.  This is said to be the highest such tax in the world but it will be limited to 'about 500' of the biggest emitters.  The Government says that it can't reveal which  these are to the public because commercial privacy laws prevent it from naming them. 

Some companies have already 'gone public' and it is clear that prominent among them are the major thermal power generators and perhaps airlines.  Some like BlueScope Steel (previously BHP Steel) will be granted a grace period before the tax comes into effect. In this case it is publicly announced that the company has been granted a two year grace period with possible extensions, limited to its core (iron and steelmaking) emissions.

Read more ...

Terms of Use                                           Copyright