Victoria's VIC1 region experienced minor negative pricing at -$0.05/MWh across two settlement intervals (10:25 and 10:35–10:40 on 3 June 2026), representing a brief episode of oversupply in an otherwise low-price period. The event was characterised by rapid price oscillation between near-zero and slightly negative values, indicating marginal excess generation that dispatch operators were reluctant to curtail.
The negative pricing was primarily driven by exceptionally high wind generation (~3833 MW combined across VIC1) coinciding with substantial brown coal output (~4066 MW), creating a supply-demand imbalance during a period of low demand. Binding transmission constraints on the Moorabool-Waubra interconnector (F_T+NIL_MRWF_TG_R6) with high marginal values (~$113–116/MWh) prevented efficient dispatch to neighbouring regions, forcing the market to accept negative prices as the least-cost clearing mechanism rather than incurring larger constraint violation penalties.
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.