Impacts of LNG Export and Market Power on Australian Electricity Market Dynamics, 2016–2019

摘要: Supply-side shocks in concentrated energy markets provide opportunity for exercise of market power, especially undergoing transition due to imperatives such as decarbonisation. In Australia, the recent linkage international gas with electricity provides a useful example review these dynamics. Using intersections between and we explore how (1) supply constraints associated commencement Liquefied Natural Gas (LNG) exports, (2) concentration closure old coal plant, contributed effect doubling wholesale prices. The Australian experience highlights disproportionate impact generation on prices its price-setting role. price tightened has been significantly exacerbated through via practise ‘shadow pricing’. case, potential adverse intersectional impacts LNG exports could have substantially adverted enforced domestic reservation about 6% export volumes. Competition issues gaming opportunities, which accompanied increased that withdrawal capacity, supply-side shock stemming from evolving market.