October 21, 2021 Read More →

Renewables push Victoria power prices to 1 penny per megawatt-hour

Renew Economy:

One cent a megawatt hour. That was the average price of wholesale power for most of the daytime hours in the state of Victoria in August and September.

Record amounts of renewable energy generation on Australia’s main grid, and an abundance of rooftop solar, sent the average spot electricity price in Victoria down to around zero for six-hours of each day in August and September, a new report has revealed.

The latest quarterly data from the Australian Energy Market Operator details a three-month period from July 01 to September 30 that started with volatile high prices, but ended with record levels of negative prices, a situation that arises when supply outstrips demand.

AEMO says that across the quarter, 16% of NEM trading intervals were zero or negative, more than double the previous record of 7% in Q4 2020 – a situation it puts down to increased renewables supply, a mild August and Covid-19 restrictions reducing demand.

[Sophie Vorrath]

More: Rooftop solar sends Victorian power prices to zero every day for two months

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