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.

Retail prices are rising. That what concerns consumers, not the BS put about by Bowen and backroom commentators too stupid to see what high retail prices are doing to business and the economy.

Even more stupid than Bowen and AEMO are the people who believe the BS or repeat the BS.

Industry in Australia is doomed without cheap, baseload RETAIL electricity. To hell with wholesale prices and who signed what and when they signed it.

Our last aluminium smelter is heading for closure within the next 3 years, and most heavy industry went overseas long ago.

China, while selling us renewable crap, has 70 aluminium smelters. Our only one has to “compete” with them, according to that idiot Matt Kean.

The idiot admits industry is more “viable” with cheaper power, but he and his fellow idiots don’t want Australia to have cheap power.

In the meantime, while Australia is dying, one of the biggest renewable investors and twats, has changed his mind. Bill Gates has called for a pivot away from “the obsession with near-term emission reduction to the cost-effective improvement of human lives”.

The cost of renewable energy is simply “not commercially viable” according to the CEO of Tomago smelter. And there is a limit on how much the Albanese can use taxpayer and consumer money to hide that fact.

Albanese’s tax grab is the highest ever, with the most economy-killing tax being Net Zero.

EnergyGWh
Contribution to demand
Av.Value$/MWh
Sources
Solar (Rooftop)
90
15.3%
$10.27
Solar (Utility)
58
9.8%
$18.45
Wind
109
18.5%
$67.23
Hydro
32
5.3%
Battery (Discharging) 72.50
0.7%
$88.25
The figures speak for themselves. Not all persons can see the reality of solar and wind.
Those that are to thick to see reality.
They says nukes are better, even though it cost the wellbeing of their political party.
Now one nation is rising as liberal is sinking very interesting.
The coalition is in shreds, I am hoping for one nation number 2 on the ballot line up.

Albo is the man at large and in a very solid position.

Great post, WTF. It really can’t be overstated: wholesale prices are falling - not rising - and renewables are central to that trend.

The fact that this is happening despite rising demand shows how critical solar and wind have become to the price equation. And we’re not talking theory - this is hard AEMO data, not a Bowen press release.

The Qld LNP government's latest moves here defy both economic sense and political necessity, which means it can only be ideological.

Let's take a look at your latest meltdown, ttbn.

//Retail prices are rising. That’s what concerns consumers…//

Sure - and those prices are based on long-term contracts, signed 1-3 years ago when wholesale prices were at record highs. That’s how the hedging system works.
Now that wholesale prices have fallen 27% year-on-year (AEMO, Sept quarter), retail prices will follow - once old contracts roll off. That’s not "BS," it’s how the market functions.

//To hell with wholesale prices and who signed what…//

That’s like saying "to hell with oil prices and when servos bought fuel" - and then wondering why petrol is expensive. You can’t complain about retail prices and ignore what drives them.

//Industry in Australia is doomed without cheap, baseload RETAIL electricity…//

Coal isn’t cheap anymore. It’s unreliable, aging, and increasingly uneconomic. The cheapest new generation is wind and solar, according to CSIRO, IEA, and Lazard.

The problem isn’t renewables - it’s a lack of storage, transmission, and proper market design. That’s what’s failing Tomago and other heavy industry, not a wind turbine in Dubbo.

//China has 70 aluminium smelters…//

China also has subsidies, looser regulations, and vastly lower labour costs. Copy-pasting their energy mix won’t bring our industry back. And funnily enough, China is now the world leader in wind and solar deployment - because it makes economic sense.

//Bill Gates has called for a pivot…//

Gates didn’t reject renewables, he said we shouldn’t only focus on near-term emission cuts. He’s still investing billions in clean tech. Misrepresenting him doesn’t help your case.

//Net Zero is the most economy-killing tax…//

Net Zero isn’t a tax. It’s a target. And if we abandon it, we’ll face carbon border tariffs from the EU and others - killing exports instead of saving them.

You want to help industry? Great. But scrapping Net Zero and ignoring price signals isn’t a plan. It’s a tantrum.