Power Prices Slump in Australia as Batteries Push Out Gas

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessPower Prices Slump in Australia as Batteries Push Out GasPower prices almost halved in Australia last quarter, as renewables and batteries pushed out natural gas-fired generation in the main grid.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.fo4y(nn9vrmww22656e66inw_media_dl_1.png AEMO, Bloomberg(Bloomberg) — Power prices almost halved in Australia last quarter, as renewables and batteries pushed out natural gas-fired generation in the main grid. THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountWholesale spot prices in the National Electricity Market averaged A$74 ($51.71) a megawatt-hour in the three months through June, down 47% from a year earlier, the network operator said in its latest Quarterly Energy Dynamics report. Gas-powered generation fell by a third to its lowest second-quarter average since 2003.Renewables generated a record 42% of power in the NEM, which covers more than 80% of Australia’s demand, but still trailed coal as the main source. Meanwhile, growing grid-scale battery capacity more than tripled the volumes of energy shifted from daytime periods of high solar output into the evening peak, according to the report.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe drop in prices during the quarter — traditionally the most costly as the southern hemisphere winter starts — will be welcome news to policymakers focused on costs of living, although the impact on consumer bills may be limited. It will also fuel a debate on whether more gas is needed to support the grid in periods of low renewable generation as the nation shuts down its aging coal plants. “Batteries are increasingly usurping gas as the primary balancing technology for intraday variability in renewable generation,” said Sahaj Sood, an analyst at BloombergNEF. “However, questions remain over their suitability for balancing longer-term droughts in renewable supply.”East coast wholesale gas prices averaged A$9.08 a gigajoule, down from A$12.36 a year earlier and the lowest quarterly average since the second quarter of 2021, according to the report.Meanwhile, prices in Western Australia’s Wholesale Electricity Market soared 30% year on year to a record A$117 a megawatt-hour because of reduced coal and wind generation. However, increased use of batteries saw a sharp drop in intraday price swings.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.