Australian Chart of the week | A tale of two cities: batteries vs pumped hydro & solar vs wind

On 1 April 2020 the Australian Energy Market Operator (AEMO) released the final Marginal Loss Factors – MLFs – for 2020-21. This week’s Chart of the Week looks at how the MLFs have changed and which assets benefited the most.

If we look closely at the MLF results over the past decade there is a clear divergence in the impact that marginal losses have on particular generation technologies. This is not just limited to new entrants.

Wind has seen a fall in MLFs since 2015 (~2 percentage points) – which was around about average across all technologies during this period, excluding solar. Meanwhile, solar on the other hand saw a fall three times that; more than 6pp. Solar is not alone in this step decline. Hydro run of river also hit with significantly declining MLFs over this period.

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