Wholesale power prices tumble amid growing green energy generation

New market intelligence has revealed a major factor behind record-low levels of coal and gas generation.

According to new market intelligence, wholesale energy costs are being driven down by renewable energy, pushing emissions to record lows.

The findings are based on the latest market intelligence report by Australian Energy Market Operator, an organisation which oversees the operations and security of the National Energy Market.

NEM wholesale prices for the March quarter tumbled to an average $83 per megawatt hour, down 10.5 per cent from the December quarter and 62 per cent from September.

The Australian Energy Market Operator has released its market intelligence report for the March quarter. Picture: NCA NewsWire / Jeremy Piper

National Energy Market wholesale prices for the March quarter fell 10 per cent from the previous quarter. Picture: NCA NewsWire / Brenton Edwards

In its first quarterly report for this year, the AEMO found massive growth from renewable energy sectors.

The report found for the March quarter that gas-fired generation had reached its lowest quarterly level since 2005, while rooftop solar experienced a record average output.

Rooftop solar outputs were up 23 per cent from the first quarter of 2022, setting new quarterly records in Victoria, NSW and South Australia.

New grid-scale solar and wind units bumped up their previous March quarterly averages by 11 per cent.

Rooftop solar outputs set new records for the March quarter in Victoria, NSW and South Australia. Picture: NCA NewsWire / Luis Enrique Ascui

“These insights reinforce that critical transmission investments … are needed to share low-cost, low emission renewable energy with consumers,” AEMO chief executive Daniel Westerman said.

“Constraints are affecting output from regions like Victoria’s Murray River Renewable Energy Zone, which is why we need investment in new transmission.”

Mr Westerman emphasised the need for high voltage power lines to enhance the system’s ability to take in renewable energy as the grid continues to shift towards green energy sources such as wind and solar.