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The Winds of Change: An Analysis of Recent Changes in the South Australian Electricity Market

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Dylan McConnell, Mike Sandiford
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A rise of renewable generation in South Australia over the last decade has been accompanied by the progressive withdrawal of baseload coal generation, and a changing role for gas generation and reliance on exchanges with the neighboring state of Victoria. Along with the opening up of the interlinked Australian east-coast gas market to international gas pricing, the dynamics of the South Australian electricity market has shifted accordingly, making it a test case for understanding how to manage the transition to a high penetration renewable energy system in liberalized energy-only markets, according to the authors of this report. They offer suggestions that they say could help avert future crises in South Australia, as well other Australian jurisdictions on their pathway to decarbonisation.