A major binding constraint event occurred in the NEM with constraint F_T+LREG_0050 reaching an exceptionally high shadow price of $232,000/MWh, indicating severe scarcity in the left regulation service. This represents a critical constraint on the system's ability to manage rapid frequency deviations, with the marginal value far exceeding typical operational costs.
The extreme shadow price on binding constraint F_T+LREG_0050 suggests a shortage of available left regulation capacity relative to system demand at that dispatch interval. The simultaneous binding of multiple F_T+RREG_0050 constraints (right regulation) at substantially lower marginal values ($4–5/MWh) indicates asymmetric regulation scarcity, where left regulation services were critically depleted whilst right regulation remained comparatively available, likely reflecting an imbalance in generator availability or dispatch positioning at that time.
Causal analysis generated by gridIQ's synthesis model from live AEMO market data: dispatch prices, generation mix, interconnector flows and market notices in the interval surrounding the event.