"Heat shorts NSW, QLD power supplies"
3rd February 2006
Rod Myer (of The Age) wrote an article in the day following a day (2nd February 2006) in which high levels of demand were experienced across both Queensland and NSW.
As noted in the article, it was seen through NEM-Watch that there was a reduction in available generation capacity of approximately 700MW. This would have contributed to the high prices, especially with Snowy exporting at capacity over the Snowy-NSW transmission line.
For further detail, please see the snapshot of the market, as it was operating on 2nd February 2006, highlighting the extreme prices being experienced at the time in Queensland and NSW at the time, as a result of the local shortage of capacity. The snapshot was taken from NEM-WatchTM.
To read the article, please see either:
1) The news release online at The Age; or
2) A PDF copy of the release.
Note that this same incident was also referenced several days later in the Australian.
The events surrounding the price spike on the 2nd February 2006 have been illustrated in more detail with screenshots from NEM-ReviewTM and NEM-WatchTM in an article at WattClarity.com.au - our electricity market blog:
2nd February 2006 - Price spike in NSW and Queensland
http://wattclarity.com.au/Public/Article.aspx?aid=6
Interestingly, NEMMCO had been forecasting, for a number of weeks beforehand, that the supply/demand balance would be tight on that particular day (2nd February 2006) - as shown through our NEMforecastTM software package, and as described in this WattClarity article:
2nd February 2006 - NEMMCO's forecast from 17th January
http://wattclarity.com.au/Public/Article.aspx?aid=7