The Federal Government’s plan to transition to renewable energy sources like solar and wind is helping to stabilise electricity prices for Australian households and businesses after the biggest global energy crisis in 50 years.
According to the draft Default Market Offer (DMO) released by the Australian Energy Regulator, the benchmark for residential and small business electricity bills is trending downward, with reductions of up to nearly 10 per cent for some small businesses and over 7 per cent for some households in NSW, southeast Queensland and South Australia.
The positive pricing news comes as the government aggressively implements its 82 per cent renewables by 2030 plan. Last year alone, there was a record $4.9 billion invested in batteries and large-scale energy storage, with 27 large batteries under construction. Over 337,000 rooftop solar systems were also installed across the country, adding 5.9 gigawatts of new renewable generation capacity.
Federal Climate Change and Energy Minister Chris Bowen said the government’s renewables roadmap aligns with independent advice that firmed renewable sources like solar, wind, batteries and pumped hydro provide the lowest-cost, reliable path forward as aging coal plants retire over the next decade.
“The Albanese Government is getting on with the job of delivering a firmed renewable energy system to benefit all Australians,” Bowen said.
The draft DMO pricing reflects recent lower wholesale electricity rates aided by increased renewable supplies. The Australian Energy Regulator will finalise the Default Market Offer on May 27 after a consultation period.
For more renewable and solar news, subscribe to ecogeneration.