Business · Energy & Commodities · 9 hrs ago
NSW home batteries earn from electricity price spike during heatwave
A spring heatwave pushed temperatures in New South Wales into the mid-30s, driving up demand for electricity.
At the same time, four coal units were offline and two were running at reduced capacity, while transmission maintenance limited power flows to Sydney.
Prices on the National Electricity Market surged, briefly reaching $23,107 per megawatt hour.
Home battery owners sold surplus electricity to the grid as prices rose, with the story reporting a $2 million payday for battery owners.
The price swings were unusual, and market designer Dave Smith said the growing number of household batteries appeared to be a new influence on the market.
The spike highlighted pressure on the grid as it manages extreme heat, aging coal plants and limits on moving electricity where it is needed.
A heatwave and power-supply constraints drove New South Wales electricity prices to a peak of $23,107 per megawatt hour on Monday afternoon.
Some owners of home batteries with solar panels sold surplus electricity to the grid during the price spike.
Prices exceeded $5,000 per megawatt hour in 11 separate five-minute intervals.
Four of NSW’s 12 coal-fired generating units were unavailable, while two others were operating at reduced capacity.
Transmission-line maintenance also limited how much electricity could be delivered to Sydney.
- Who
- Home battery owners with solar panels, electricity generators and electricity market operators.
- What
- NSW electricity prices spiked during a heatwave, creating an opportunity for some battery owners to sell power to the grid.
- When
- Monday afternoon this week, with the spike beginning around 3:30pm AEDT.
- Where
- New South Wales, Australia.
- Why
- Heat increased demand while coal unit outages and transmission constraints limited electricity supply.
This story does not have two clearly opposing sides.
A spring heatwave pushed temperatures in NSW into the mid-30s as some coal units and transmission lines were unavailable or constrained.
NSW electricity prices began surging and fluctuating sharply.
Prices reached $23,107 per megawatt hour, just below the market cap.
Home battery owners shared screenshots of earnings from selling electricity.
- Price peak
- $23,107 per megawatt hour
- High-price intervals
- Above $5,000 per megawatt hour in 11 five-minute intervals
- Coal units unavailable
- Four of NSW’s 12 coal-fired generating units
- Coal units at reduced capacity
- Two
- Transmission constraint
- Technical curtailment peaked at 2,800 megawatts
What people are saying
What's problematic is that doesn't normally happen in October.
Technical curtailment peaked at (2,800 megawatts), with renewables and batteries in Southern NSW being the most heavily affected.
have made $100 in an hour selling 30kw/h
the wild price gyrations appeared to have been driven by a new force in energy — Australia's growing fleet of household batteries