Accelerate the World's Transition to Sustainable Energy - to fight Anthropogenic Climate Change, page-34919

''We need more power. If only prices dropped instead ''

you mean like this?

The wholesale price of electricity has dropped significantly in Australia in 2023 compared to the previous year[1][2][3][4][5].
Key points about the wholesale electricity price drop in Australia:
1. Magnitude of the drop: The Australian Energy Regulator (AER) reported that average annual wholesale electricity prices fell by between 44% and 64% across the National Electricity Market (NEM) in 2023 compared to 2022[1][5].
2. Regional variations: South Australia recorded the largest price drop among all states[4]. Tasmania saw the biggest decrease at 64%, while South Australia experienced a 44% reduction[1].
3. Reasons for the drop: The price decrease is attributed to milder weather conditions, lower fuel costs, fewer coal supply issues, and an increase in cheap wind and solar supply[5].
4. Current price levels: Wholesale electricity prices are now significantly below the record highs experienced in 2022 and are closer to longer-term annual averages[5].
5. Impact on consumers: While this drop in wholesale prices is positive for the market overall, it may take some time before consumers see significant reductions in their power bills. This is because retailers typically lock in their costs in advance and wholesale electricity costs only account for about 40% of a retailer's total costs[2][3].
6. Future outlook: As retailers' wholesale costs adjust to the lower prices, consumer prices should eventually reflect these lower costs[5]. The Australian Energy Regulator has signaled potential cuts to benchmark retail prices (Default Market Offer) from July 2024, driven by falling wholesale prices[4].
It's important to note that while the trend is positive, the impact on consumer bills may not be immediate or directly proportional to the wholesale price drop due to various factors in the electricity market and pricing structure.

[1] https://www.canstarblue.com.au/electricity/aer-wholesale-report-jan-2024/
[2] https://www.copyright link/companie...esale-electricity-prices-fall-20240130-p5f14e
[3] https://theconversation.com/wholesa...will-have-to-wait-for-relief-heres-why-222495
[4] https://www.premier.sa.gov.au/media...-records-nations-biggest-fall-in-power-prices
[5] https://www.aer.gov.au/news/articles/news-releases/average-wholesale-energy-prices-drop-2023