Australian wholesale power prices drop 27% as solar and batteries surge
Wholesale electricity prices in Australia fell 27% year-on-year, driven by increased rooftop solar, large-scale solar, wind and battery storage.
According to the latest quarterly report from the Australian Energy Market Operator, wholesale electricity prices fell 27% in the July-September period relative to the previous year and 15% versus the April-June quarter. The decline occurred despite a record high in winter electricity usage, helped by warm weather that reduced heating needs. Growth in rooftop solar, utility-scale solar, wind farms and especially battery storage shifted energy supply to higher-demand evening hours, lowering peak prices.
Victoria emerged as the biggest consumer, contributing almost all of the 1.3% year-on-year demand increase, driven by ongoing electrification and rising industrial and data-centre loads. Renewable generation overtook gas for the first time, with gas-fired output dropping 34% to its lowest level since 2000, while coal generation showed mixed changes. Overall grid emissions remained roughly steady.
Why it matters
The price drop shows how renewable energy and storage are reshaping Australia's power market and could lower costs for consumers.
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