Record renewables are leading to lower energy prices and emissions.

The latest Quarterly Energy Dynamics report from the Australian Energy Market Operator (AEMO) shows a surge in renewable energy generation, particularly from grid-scale renewables and rooftop solar, which has driven a dramatic decline in wholesale electricity prices and greenhouse emissions.

Daniel Westerman, AEMO CEO, notes that wholesale electricity prices on the east coast have plummeted by nearly half compared to 2022 due to the escalating contribution of low-cost renewables 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,” Westerman stated.

The report shows the pivot in Australia’s energy transition, particularly evident in South Australia and across the east coast. 

On 31 December, rooftop solar alone met 101 per cent of South Australia's total electricity demand. 

Similarly, on 24 October, rooftop solar and grid-scale renewables supplied 72 per cent of all electricity across the east coast.

These significant milestones are reflective of a broader trend. 

Victoria, with its ambitious 95 per cent renewable energy target for 2035, achieved the lowest average quarterly prices at $26/MWh. 

In contrast, New South Wales and Queensland, with higher coal dependency, recorded the most expensive average wholesale electricity prices.

The impact of renewables extends beyond price reductions. 

The report reveals that 20 per cent of dispatch intervals in the National Electricity Market (NEM) registered negative or zero prices, a new high for any quarter. 

Westerman says this is an opportunity, stressing the potential of energy storage solutions like batteries and pumped hydro to maximise the benefits of low-cost renewable energy.

In Western Australia, a different scenario unfolded. A severe heatwave pushed electricity demand to record levels, resulting in a 15 per cent increase in the average wholesale electricity price compared to the previous year.

More details are accessible here.