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Posted 2 years ago | 1 minute read

Wholesale power prices fall on renewable energy output

In its latest snapshot of the national electricity market, the Australian Energy Market Operator (AEMO) noted wholesale prices fell back from $216/MWh in the September quarter to $93/MWh in the three months to December 31.

Despite the drop, AEMO noted prices for the quarter were still significantly higher than the previous corresponding period in 2021, when they averaged barely $50/MWh. Forward electricity contract prices started the quarter high and increased throughout the start of October before easing in mid-October and November and dropping significantly in December after the Federal Government’s announcement of intervention in the wholesale domestic gas and thermal coal markets via temporary price caps.

Source: AEMO

AEMO’s Quarterly Energy Dynamics (QED) report, published on 24 January shows reduced wholesale prices were influenced by wind and grid-scale solar setting prices 17% for the quarter, up 4% from Q4 2021, hydro at 34% (up 1%), while black and brown coal generation reduced from 45% to 39%. The instantaneous penetration of renewable energy for the NEM as a proportion of total generation reached 68.7% on 28 October 2022, exceeding the previous record of 64.1% (set on 22 September 2022).

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