OK, I realise that it is counter intuitive.
New Zealand is on a single time zone. That means that not much generation is needed overnight. Most people get out of bed at around the same time in the morning, so the demand increases rapidly; around 2000 MW increase between 6:00 am and 8:00 am. Baseload stations, are quite slow at ramping, or changing their generation, that is why they are called baseload. Hydro is required to ramp up quickly to meet this increase in demand, and as a result spends a lot of time in an inefficient range. This wastes water, and often requires the use of stored water, just to meet frequency keeping or PLSR that baseload stations can't provide.
Two months ago, when both Taupo and Waikaremoana were low, frequency keeping prices in the north island reached a record high because both Genisis and Mighty River had to use stored water, which was almost not available, to provide those services that baseload stations require.
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