Whirinaki reserve energy trigger price (RETP)

The RETP is a key parameter in the current Whirinaki offer strategy. Whirinaki is offered at the RETP when the current security level is Security Watch (i.e. either hydro storage has fallen below the 1% Hydro Risk Curve, or a sudden event has occurred that, in the Commission's judgement, gives rise to a 1% risk of energy shortage - see Emergency response plan pdf [168 KB])

The RETP is calculated as the cost of diesel multiplied by a nominal heat rate of 10.5 GJ/MWh and divided by a nominal calorific value of fuel of 0.03551 GJ/l. Under the Reserve Generation Capacity Agreement.pdf [2384 KB], the diesel cost paid by the Commission is calculated on a FIFO (first in first out) basis - fuel deliveries are deemed to be used sequentially, and prices change when one tranche is used up and another begins.

Currently the RETP is $387/MWh.

As of 10 August 2010, the RETP will not change until approximately 4.2 million litres of diesel have been consumed (to produce approximately 14 GWh of electricity). At that point, the RETP will be set to $451/MWh, which will apply until a further 5.9 million litres of diesel have been consumed.