In this issue:

• Spot Market Commentary
• Spot Market Prices
• Hydro Storage

Spot Market Commentary

Spot market prices for the month of February averaged $137.85 at Haywards.

Overall New Zealand storage fell 4% to 57% of maximum capacities.  Spot prices were markedly high due to a number of constraints in the North Island (TCC 8 week closure; NPL close-down; Huntly restriction due to river heating) and constraints on the DC link.  This was exacerbated by the on-going lack of rain in North Island hydro catchment areas.  The reserve generator at Whirinaki (155MW) ran for 9 days during the month, averaging almost 1000MW total generation per day on those days.  This generator only kicks in when the average dispatch price for a 4 hour period is $200/MWh or greater.

Spot Market Prices

The Spot Market averaged $137.85 at Haywards for February 2008, a significant increase from $82.28 for January 2008.

Half-hour spot prices at Haywards were somewhat volatile, from a high of $1107.86 for period 34 on 4th February, to a low of $38.77 for periods 4&5 on the 7th of February.

Spot Price Statistics

Average Daily Prices

Average Half Hour Prices

Hydro Storage

Inflows for February for New Zealand were above average for only 4 days of the month.  Overall South Island storage remained constant at 63% of maximum capacity, whilst North Island storage fell from 53% to 33%.

The overall NZ level fell 4% to 57% of maximum capacity.

National Storage

The NZ storage level currently sits well above the EC Operational Minzone, as the following diagram illustrates:

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