Our Market Operations Weekly Report contains the latest information about the electricity market, including security of supply, wholesale price trends and system capacity.
It is published every Tuesday. Click here to receive the report via email every week.
If you have any comments or questions please contact the Market Operations Team at [email protected].
Latest Report / More Information
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MO Latest Update.pdf
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Current Storage Positions
Overview
New Zealand hydro storage continues to increase, resulting in national hydro storage levels rising from 88% to 92% of the historic mean. Thermal generation began to taper off this week with high wind generation and the increase in hydro storage.
In this week's insight we discuss the difference in real-time versus forecasted offers by wind and solar generators, and the upcoming central hybrid forecasting system.
Security of Supply and Capacity
Energy
New Zealand hydro storage increased to 92% of the seasonal mean this week, up from 88% the week prior. South Island hydro storage increased from 88% to 91%, and North Island storage increased from 100% to 106%.
Capacity
National capacity margins were healthy last week. Each peak had residuals over 1,000 MW due to high thermal unit commitment.
The N-1-G margins in the NZGB forecast are healthy through to early July. Within seven days we monitor these more closely through the market schedules. The latest NZGB report is available on the NZGB website.
Electricity Market Commentary
Weekly Demand
Total demand last week was 759 GWh, down from 767 GWh the week prior. Load is expected to continue to increase through May and June as we head into winter. The week's peak demand of 5,828 MW occurred at 6:00pm on Tuesday 13 May.
Weekly Prices
The average wholesale electricity spot price at Ōtāhuhu last week dropped to $130/MWh from $270/MWh the week prior. Reduced wholesale prices were the result of high wind generation throughout the week and an improving hydro storage situation. Wholesale prices at Ōtāhuhu peaked at $395/MWh on Sunday 18 May at 1:00pm. This unusual spike for a Sunday afternoon was the result of a sudden drop in wind generation.
Generation Mix
Wind generation increased from 8% to 12% of the mix last week. Hydro generation increased from 46% the week prior to 48% last week. Thermal contribution dropped from 19% to 13% of the mix due to the high wind generation and the slight increase in hydro output. Geothermal remained at 24% of the mix.
HVDC
HVDC flow was mostly northward last week with reduced thermal output. Overnight wind generation contributed to high southward transfer during these periods. In total, 29 GWh was sent north and 14 GWh was sent south.