The Australian Energy Regulator's (AER) latest Wholesale Markets Quarterly Report shows in the final 2022 quarter, prices fell from record levels earlier in the year but remained higher than for the same timeframe in 2021.
Record low electricity demand in the National Electricity Market (NEM) resulted from a mild start to summer and strong rooftop solar output. This combined with high output from large-scale solar and wind generators, contributed to the easing of wholesale electricity prices.
In gas markets, the lower demand for electricity led to lower gas-powered generation in the NEM, which in combination with the lowest Liquid Natural Gas exports in Q4 since 2018, eased pressure on domestic gas spot prices.
Increased wind and solar output, fewer black coal outages and reduced fuel supply problems reduced the need for expensive gas-powered generation in the NEM.
NEM price expectations for 2023 improved in December with forward base future prices falling between 41% to 55% compared to their highest point in October 2022.
Wholesale markets quarterly Q4 2022 AER report