[alexeckermann]

Some insight into the change year-on-year to the South Australian negative pricing; the change may be due to more active management by AEMO (Australian Energy Market Operator). Wind is now mostly curtailed at ~1.2GW and a minimum quantity of synchronised gas generators operating. This was in response to a system security scare in 2016 where the entire state experienced a 'Black System' event where we lost all power -- lights out in the entire state. That was caused by a storm taking out some primary transmission lines on top of a less-than-ideal market generation mix causing a chain of events but it put focus and revealed the bigger security issue everyone ignored -- higher risk figures were reported but nobody cared until it was a problem.

Whilst we have enough wind and solar to take the state to 100% renewable (at times) it is not secure enough to provide industrial contracts or services like FCAS (Frequency Control Ancillary Service). With dwindling industrial contracts for energy providers the generation market has gotten smaller, primarily supplying domestic load/customers. That on top of a privatised market lacking responsibility for planning ahead has left the local market in a flux. The spot market has become so unreliable that some businesses have opted for their own on-site diesel generation.

One may assume that this would mean our power prices are pretty low. But that isn't the case. It has been said we have some of the highest electricity prices in the world. In context, this has been because of waining industrial load contracts and profit focussed privatised generators. We just also happen to have a high-wind generator mix.

So whilst living in a state with a high % of renewables is great, the lack of planning in a privatised market has left everything a bit messed up. Businesses looking outside the highly variable spot market into the hands of fossil fuel generators, domestic customers paying some of the highest power prices in the world, and nobody is really responsible/accountable for keeping the lights on.