The Australian Energy Market Operator’s latest Quarterly Energy Dynamics Report found a significant drop in wholesale electricity prices across the east coast National Electricity Market (NEM), driven by an increase in the availability of dispatchable generation, increased renewable energy, and milder late winter weather.
September saw a number of records regarding renewable generation being broken, with 61.4% of electricity across the NEM being from renewable sources at one point in the month. One day also saw renewable energy supplying 70% of energy demand in the Western Australian network.
Minister for Industry, Energy and Emissions Reduction, and Federal Member for Hume, Angus Taylor, says the report highlights the need for dispatchable energy to support the growth in renewable energy and keep prices low.
“Coal outages in NSW, coinciding with the incident at Callide in Queensland, drove up prices across the NEM in July,” Minister Taylor said.
“However, coal coming back online, falling gas prices, easing demand and increased rooftop PV generation during August and September put downward pressure on electricity prices, with September mainland NEM prices returning to average $37 per MWh.
“This shows why it is so critical to have enough dispatchable supply in the system to back up growing renewables, keep prices low and the lights on”.
For more information, you can find the Quarterly Dynamics Report on the AEMO website.