Energy demand dropping in Australia
In Australia, energy peak demand may be disappearing. For the past several years, the country has experienced periods in which the cost of energy would be pushed beyond $5,000 per megawatt-hour due to high demand. These “super peaks” generally lasted between 36 and 100 hours, but still cause a significant financial impact on the country when they occur. The super peaks are often caused due to the energy demands of citizens during the hottest seasons of the year or the energy needs of various projects occurring throughout the nation. As the country continues to focus on the adoption of alternative energy, it may no longer see these costly super peaks.
Exact financial information concerning the trend not yet released
The Australian Energy Regulator (AER), the country’s regulatory authority of wholesale electricity, has released a new report documenting the disappearance of super peaks. The report shows that the country has experienced a significantly lower number of super peaks in 2011 and that this trend has persisted into 2012. Though the AER has not released precise information concerning the disappearance of the super peaks, it is expected that the trend will put some degree of financial pressure on energy companies in the coming months as they experience lower revenues. Savings generated by this trend are not being experienced by consumers at this time.
Super peaks offset by the adoption of alternative energy and efficiency standards
Milder weather and increased focus on efficiency and alternative energy are contributors to the disappearance of super peaks. Energy costs are beginning to be taken more seriously by consumers and businesses alike, leading to new consumption patterns that have all but obliterated the occurrence of super peaks. Australia’s insistence on the use of alternative energy and the adoption of ambitious efficiency standards have driven down the demand for power significantly.
Time will tell whether super peaks are gone for good
Whether the trend will continue is uncertain. Australia may still experience high temperatures in the coming months which could lead to higher energy consumption. AER does not expect super peaks to make an appearance for the remainder of the year. If they do, their financial impact is expected to be offset by their absence through much of 2011 and 2012.
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