Today the Western Australian Wholesale Energy Market hit the price floor of -$1000/MWh for the first time on a weekday.
The long-term trend is clear.
The electricity system is shifting from big centralised thermal generation and long-distance electricity transmission and distribution to small and smart distributed energy resources (or DERs). When energy is generated and used locally, it looks to the electricity market like declining demand and is reflected in low or negative energy prices.
While places like Western Australia and South Australia are the tip of the spear for the shift towards decentralisation, eventually we’ll see this effect around the whole world as solar and storage systems continue their rapid price decline. Western Australia is taking control of this shift with the DER Roadmap, which is providing a pathway for better integration of DER into the electricity system.
At Gridcognition we believe the worlds future energy system will be fully decentralised and fully electrified, with zero emissions, and we can’t wait.