Wholesale electricity prices across the National Electricity Market (NEM) fell to their lowest Q1 level since 2015 as gas prices continued on the downward path established in 2019.
The Australian Energy Regulator's (AER) Wholesale Markets Quarterly found that Q1 2020 marked the first time since 2015 that Q1 wholesale electricity prices were below $110/ MWh in all regions.
Individual states also recorded the lowest Q1 prices in many years:
- Queensland (2012)
- Tasmania (2015)
- South Australia (2016)
- Victoria (2017)
AER Chair Clare Savage noted a number of factors behind the falling prices.
‘Weather conditions during the period were generally mild, notwithstanding some extreme events and high demand early in the quarter,’ Ms Savage said.
‘There were reduced costs for gas and coal generators which meant they could offer electricity into the wholesale market at lower prices. There was also an increase in the amount of low priced solar generation coming into the market.’
For more information, see the Australian Energy Regulator website.