Market Watch: Renewables piling into grid could be good news for energy costs

Words by Zembl

The SMH (Sydney Morning Herald) recently reported that not only has the target for renewable energy’s share of Australian National Energy Market by 2030 been lifted to 82%, but that the volume of power generated by wind and solar farms rose to an all-time high in December 2023, up 14% on the same period in 2022, and bumping up the market share of renewable energy to 43% of the total energy market.

This is evidence that the pace of Australia’s transition to renewables has exceeded previous expectations, and a boost for businesses waiting for a turn in the energy rate price hikes we’ve seen over the last two years.

Why this matters for energy prices

In February 2022, the Russia-Ukraine war saw a global crunch on energy supplies as many nations placed embargoes on Russian fossil fuel exports, driving the price of power bills sky high – rising by up to $350 p.a. in Victoria and up to $450 p.a. in NSW from July 2023.

Meanwhile the rise of solar and wind farms was progressing at pace, pumping renewable energy into the grid, lessening our dependence on coal-based energy and easing pressure on demand. And what happens when there’s less pressure on demand? Prices come down! This means we can all expect some energy bill relief when the DMO (Default Market Offer) is set on July 1.

To put it into perspective, wholesale power prices (paid by electricity generators and passed on to consumers), averaged $48 per megawatt hour in the last three months of 2023, a drop of 24% from the previous three months and down 48% compared to the same period in 2022.

Furthermore, the AEMO (Australian Energy Market Operator) forecasted that the last coal plant would shut in 2038. Their CEO Daniel Westerman spoke on how this transition was a “great opportunity” for a lower-cost electricity system – an opportunity we are beginning to see turn from opportunity to reality.

How Zembl can help you capitalise

Here at Zembl, we’re Energy Experts with over 14 years in the field, constantly keeping our finger on the pulse of the volatile energy market.

This means that if the DMO does drop come 1 July, Zembl Energy Experts can go to our panel of trusted retailers and renegotiate rates that are competitive for today’s energy market.

To get started, just submit your contact details and upload a current energy bill by using the form below and a Zembl Energy Expert will call you back.

Find your savings with a FREE Energy Review
Save time and attach a bill
Upload failed. Max size for files is 10 MB.

By providing your details you confirm you agree to our terms of service and privacy policy.

Thank you!
Your submission has been received!
Oops! Something went wrong while submitting the form.