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AEMO report: Energy prices fell in third quarter despite international pressure

Australia’s energy prices fell over the past 3 months despite surging international gas prices.

An increase in available dispatchable generation helped drive power prices lower. This was bolstered by increased rooftop solar and milder late winter weather.

The Australian Energy Market Operator’s Q3 Energy Dynamics Report found wholesale electricity prices fell significantly across the east coast National Electricity Market (NEM).

Variable renewable generation grew strongly in the quarter, driven by higher wind and solar output and commissioning of new grid-scale generators.

New records were set for instances of renewable generation, with 61.4% of electricity across the NEM from renewable sources at one point in September.

The Western Australian network also set new records for variable renewable generation, supplying 70% of demand on one day in early September.

The Q3 Energy Dynamics report also covers recent volatility in global gas markets. AEMO notes that record international gas prices in the third quarter have had no discernible impact on the Australian market, with domestic energy prices moving in the opposite direction to international prices.

The Quarterly Dynamics Report is available on the AEMO website.

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