Australia’s Energy Market Operator says the cost of generating power is falling.

Wholesale electricity prices in the national electricity market fell 27% in the September quarter, compared with the previous year, according to an Aemo report released last week.

According to Aemo, increases in wind and solar and lower volatility have contributed to the fall in wholesale prices, despite rising electricity demand.

Alison Reeve, Grattan Institute’s energy and climate director, says the falls in wholesale prices, reported by Aemo, may take time to flow through to customers because energy retailers often sign contracts for electricity years in advance.

As has been pointed out many times in the past here on OLO the rising cost of retail prices is not the result of the contribution of solar and wind electrical generation.

Despite what the Queensland state government may say Queensland recorded the lowest average wholesale price of $72 a megawatt.