Australian Energy Regulator board member Jarrod Ball stated seasonal climate patterns and tight market situations had contributed to the higher prices through the quarter.
“While we would expect to see wholesale prices rise as weather in southern states cools and demand rises to keep people warm, the combined impact of cold snaps, planned and unforeseen network outages, combined with rebidding and lower solar and wind output, has pushed electricity prices higher than this time last year,” he stated.
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Westerman stated the market situations underscored the important thing function that batteries, pumped hydro and versatile gas-powered era would play as “renewable generation becomes more dominant”.
In its 25-year highway map, launched final month, AEMO decided one of the best and lowest-cost path for Australia’s vitality transition was to develop a grid dominated by renewables, firmed up with battery and hydroelectricity storage, and backed up by gas-powered era.
However, it warns new tasks have to be urgently accelerated as not sufficient are being inbuilt time to compensate for the looming retirements of extra coal-fired energy stations.
A spokesperson for Energy Minister Chris Bowen stated the information from AEMO and the regulator confirmed renewables had been the most affordable sources of energy. “When we’re forced to rely on coal generating, and ageing unreliable assets, it drives prices up,” the spokesperson stated.
“The faster we can get more reliable renewables into the system, the better it will be for energy bills and energy reliability.”
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