The National Electricity Market (NEM) is one of the most volatile markets in the world, being a “merchant market” with wholesale prices settled on a half hourly basis.
Volatility of energy prices in the NEM can be caused by numerous factors: weather, load, generator and fuel availability, amongst others.
Some recent influences on NEM prices include:
Figure 1 Historic energy futures price contrasted against key generator events (source HVBroker).
Figure 2 Example of change in energy generation mix in SA relative to energy demand.