The latest report from the Australian Energy Market Operator (AEMO) reveals that east coast wholesale gas and electricity prices are at their lowest since 2015.
The report also shows that the COVID-19 pandemic has had a “modest” effect on overall electricity demand and indirectly impacted on prices.
Managing Director and Chief Executive of AEMO, Audrey Zibelman said operational demand reduced by an average of 429MW across the national energy market (NEM), with the largest reductions being observed in Queensland and NSW.
She said this was due to those States experiencing the biggest uptake of rooftop PV and the largest COVID-19-induced demand reductions.
“COVID-19’s impact is estimated to have reduced demand in Queensland and NSW by 4.8 per cent and 2.6 per cent respectively, while South Australia’s demand increased, mostly due to colder weather increasing electricity usage for residential heating,” Ms Zibelman said.
“NEM wholesale electricity prices fell to the lowest levels since 2015 driven by an increase in low-priced supply from all fuel types — lower gas and coal prices, increased hydro output due to higher rainfall, and new variable renewable supply, as well as COVID-19-related demand reductions.”
She said the report also identified that NEM emissions had declined to record lows, and black coal-fired generation reached its lowest second quarter level since 2014 due to reduced demand and displacement by lower-priced generation.
Minister for Energy and Emissions Reduction, Angus Taylor said the AEMO report was good news for households and businesses.
“With wholesale costs making up around a third of residential electricity bills and far more for industry, these price falls are expected to provide relief for Australian families and businesses,” Mr Taylor said.
“The Government expects these low wholesale prices to be passed on over time.”
AEMO’s 44-page quarterly report can be accessed at this PS News link.
