“Impossible to operate:” AEMO suspends electricity spot market for first time | RenewEconomy

The Australian Energy Market Operator has suspended the wholesale electricity spot market across all five participating NEM states, saying it has become “impossible” to operate because of the soaring cost of fossil fuels and generators withholding their capacity from the market.

It is the first time the entire national market has been suspended, although the part of the market was suspended in South Australia in late 2016 in the wake of a state-wide blackout.

Only one compensation regime, rather than two, will be in place, and generators will get paid the average price in their state over the past four weeks, meaning they are likely to get between $300/MWh and $500/MWh, rather than the flat rate of $300/MWh stipulated in the price cap.

“Impossible to operate:” AEMO suspends electricity spot market for first time | RenewEconomy