" The wholesale component of the total price is about 28%. "
“Wind and solar power is far cheaper than electricity generated by gas, so an increased proportion of renewables will push prices lower,” the government said in its statement.
“This will unlock the potential for mining, processing, and manufacturing to produce carbon-neutral goods for the world’s markets – driving SA prosperity.” It said this synergy between investment and renewables is already being borne out by the contract to supply BHP’s Olympic Dam mine.
South Australia’s high proportion of renewables – which exceeded 75 per cent of generation in 2023 – is key to South Australian prices being far lower than the black-coal states of NSW and Queensland.
Generation and network costs are by far the biggest components of household electricity bills. Retailers must acknowledge that their costs have fallen – and pass on that price cut to households and businesses.
