THE CLIMATE COUNCIL says new modelling confirms that renewables backed by storage is the only path to lower power prices – and delays would make electricity far more expensive for households and businesses.
The Australian Energy Market Commission's latest modelling report that looks at prices in the National Electricity Market (NEM), shows:
- Power prices are projected to fall by 5% over the next five years, thanks to the building of renewables, storage and transmission.
- A one-year delay in wind or transmission projects could increase prices by up to 20%.
- Gas is an expensive power source that has pushed power prices up. Gas is projected to cause price increases after 2030, unless more renewables are built to replace ageing and unreliable coal power stations as they retire.
- A faster rollout of renewable energy and storage can cut our reliance on gas, and reduce prices.
- Households in every NEM state and territory will enjoy lower energy costs on average by 2035, thanks to rooftop solar, batteries and electrification of homes and vehicles. A household with solar and a battery that fully electrifies could reduce total energy costs - including power, fuel and gas - by more than 90%.
Climate Councillor and energy sector expert, Associate Professor Joel Gilmore, said: "This report makes it crystal clear: renewables are the only thing pushing power bills down - and the only path to lower power bills ahead. Every wind farm, solar project and battery we build pushes prices down.
"The modelling shows that power prices will fall by 5% over the next five years, because more renewables, storage and transmission are coming online. But if governments don't get their skates on, by 2030 a greater reliance on gas will drive prices back up. Just a one year delay could add up to 20% to power prices.
"If we want cheaper power, the answer isn't mysterious: we simply need to replace ageing unreliable coal with renewables and firm them with batteries. Our own sun and wind is the lowest cost option we have."
Climate Council CEO, Amanda McKenzie, said:
"Four million Aussies have put solar panels on their roofs to reduce bills and pollution. We need more solar, wind and storage to build the energy system of the future. The faster we replace expensive coal and gas the better off we will be.
"Australian households are doing it tough, with unreliable coal and expensive gas pushing up power prices in recent years. They are setting high prices while renewables are delivering by far the cheapest wholesale power in the grid.
"Trying to blame renewables for a mess caused by fossil fuels is as absurd as blaming umbrellas for rain. Renewables backed up by storage are the only thing protecting families from even higher bills, and now this report shows they will cut power prices in coming years too.''
- Attached is a PDF with Climate Council analysis sorting power bill fact from fiction
- A Climate Council explainer about why power bill costs are up can be found HERE
