Electricity prices set to plummet as strong wind and solar investment kicks in
Source: Renew Economy
The Australian Energy Market Commission (AEMC) is predicting a drop in household electricity prices in nearly all regions in the next 3 years, as some drops may be as high as 20%.
As average household electricity prices are estimated to fall by $97 a year by 2021/22, South East Queensland residents are expected to see the biggest drop by as much as $278 per annum. However, Western Australia prices are set to rise by 6.7% over the same period mainly due to the expected increase of gas prices, which it relies heavily on.
Large investments in renewable energy has played a major part in these downwards projections, with environmental certificate pricing to be 23.9% cheaper, almost 5GW of new renewable generation predicted and an additional 1.5GW of battery storage expected to be added by 2021/2022.
Whilst AEMC Chairman John Pierce did state that “more supply puts downward pressure on prices,” he did warn that “all price projections should be seen as just that, projections”.
Mr Pierce also noted that “price trends will affect individual households differently” and that exclaimed that it is “important for customers to shop around to get the best deal for their circumstances”.
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