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Why diesel fuelled?

diesel fuelled
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Why diesel fuelled?

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The Australian electricity market, in particular South Australia, is one of the most “peaky” markets in the world. Prices can spike very quickly from less than $50/MWh to over $1,000 /MWh. Though the marginal operating (fuel) cost is high relative to coal and gas, it can still earn substantial income during these prices spikes. Diesel reciprocating plant has a significant advantage over coal and gas power stations through flexibility and greater reliability (enhanced by the numerous units) and a very rapid response time enabling it to capture these price spikes.

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