Why did the Electricity Balancing Price fall in 2014?
The chart below shows the daily average balancing prices for year 2014. These are the blue columns. Each is the simple average of the 48 half hour trading period balancing prices for each day.
Overlaid on the chart are 7 day and 30 day moving averages of the daily average data.
Why the fall in balancing price?
So what happened?
On 1-July- 2014 the carbon tax was repealed.
The carbon intensity of the single largest generating organisation on the SWIS is approximately 0.9 tonne CO2/MWh, and the carbon tax was approximately $23/tonne, which works out to a cost of around $21/MWh.
This matches the fall in balancing prices which occurred around July 2014.
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