Renewables single-handedly pushing down prices in NEM
The Australia Institute’s Climate and Energy Program has released the latest National Energy Emissions Audit electricity update (The Audit*) for September 2018.
The Audit shows the new surge of renewable generation coming online are the only thing currently helping reduce energy prices - with renewables now making up a record breaking 19.7% of the National Energy Market (NEM).
- In the last four months, 14% more wind and 93% more large solar generation was added to the NEM with a lot more in the pipeline.
- The Government’s own Energy Security Board predicts 41% more wind and 300% more solar on the NEM by the end of 2020 – the equivalent of two Liddell power stations.
- Wind provided 55% of grid power generation in South Australia during August.
“This unprecedented amount of new renewable generation coming onto the grid will increase competition and put downward pressure on price,” says Dr Hugh Saddler, energy expert and author of the report.
“Despite the bad wrap renewables often get from Government, right now renewables are the only thing putting downward pressure on electricity prices.
“It is hard to see how more renewables, supported by a credible electricity emission reduction target of 45% would be economy wrecking, as maintained by the Business Council of Australia.”