The Australian Energy Market Operator calculated that, on...

The Australian Energy Market Operator calculated that, on average, wholesale prices across the National Electricity Market jumped 23 per cent from a year earlier, to $133/MWh.

A spokeswoman for Energy Minister Chris Bowen said the data showed renewables provided cheaper power, “and when we’re forced to rely on coal generation and ageing unreliable assets, it drives prices up”.

“The faster we can get more reliable renewables into the system, the better it will be for energy bills and energy reliability,” she said.

In its separate quarterly review, released also on Wednesday, AEMO cited cold weather as the reason behind a new June quarter record for electricity demand. AEMO highlighted the drop in wind and hydropower generation in the quarter and the pick-up in gas and coal power.

“These market conditions highlight the important role that batteries, pumped hydro and flexible gas generation will play as renewable generation becomes more dominant in Australia’s electricity grids,” said AEMO chief executive Daniel Westerman.