Record generation from grid-scale renewables and rooftop solar is triggering wholesale energy prices and greenhouse emissions to fall, according to AEMO’s latest quarterly analysis of Australian energy markets.
The Quarterly Energy Dynamics report for the last quarter of 2023 shows that new records are being set for the amount of renewable energy being fed into the grid, reducing the reliance on traditional coal-fired generation.
AEMO CEO, Daniel Westerman, said wholesale electricity prices on the east coast have halved from 2022 levels, reflecting the increasing role that low-cost renewables are playing in daily generation.
“More low-cost renewable energy was generated and wholesale energy prices have fallen – a record number of times to zero, and beyond, into negative territory,” Mr Westerman said.
Wholesale electricity prices in the National Electricity Market (NEM) averaged $48 per megawatt hour (MWh) in Q4 2023, which is a drop of 24% from Q3 2023 and down 48%, or half, from Q4 2022. Contributing to the falling electricity prices was record generation output from grid-scale renewables, rooftop solar, together with lower prices for thermal coal.
