Power prices surged to their second-highest March quarter in 18 years, despite a glut of solar and wind production that sent prices into the negative during the middle of the day, according to a new report.

While electricity prices have not returned to the record highs of last year – which forced the temporary suspension of the market – the quarterly update from Australian Energy Market Operator said average wholesale power prices hit $108 per megawatt hour in the National Electricity Market, 31 per cent higher than the Q1 average of $83/MWh. AEMO forecast that average prices over the next year would be even higher.