Wholesale electricity prices fall 27% as renewables surge

Summarised from 2 outlets · Updated 23 Oct, 05:02 · Archive

Australian wholesale electricity prices fell 27 per cent year-on-year as solar, wind and battery storage outpaced fossil fuels for the first time.

Wholesale electricity prices in Australia's national energy market have fallen 27 per cent in the July to September quarter compared to the same period last year, according to the Australian Energy Market Operator. The decline occurred despite record high winter electricity demand. Prices were also down 15 per cent compared with the previous quarter from April to June.

The fall has been driven by rooftop solar, wind turbines, large-scale solar installations and battery storage. Gas-fired generation fell 34 per cent to its lowest July-September reading since 2000, marking the first time renewable energy surpassed fossil fuel generation. AEMO policy general manager Violette Mouchaileh said increased battery charging and discharging contributed to 'significantly lower evening peak prices' by shifting renewable energy into higher-demand periods.

Households with rooftop solar and batteries are drawing three-quarters less electricity from the grid during the evening peak compared to homes with only solar. Victoria accounted for almost all of the 1.3 per cent year-on-year demand growth, attributed to electrification, higher industrial demand and rising data centre consumption. Wholesale market prices influence but do not set retail prices paid by consumers.

How it is being reported

• Wholesale electricity prices plunge 27 per cent as solar and battery storage surgeWholesale electricity prices have fallen 27 per cent year-on-year despite record winter demand, as fossil fuels are outpaced for the first time in years.The West Australian · 23 Oct, 04:38
• Wholesale electricity prices plunge 27 per cent as solar and battery storage surgeWholesale electricity prices have fallen 27 per cent year-on-year despite record winter demand, as fossil fuels are outpaced for the first time in years.Perth Now · 23 Oct, 04:36

In this story: Australian Energy Market Operator · Violette Mouchaileh · Victoria · Australia

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