Renewables drive falling power prices

Household power prices are falling in south-east Queensland and will continue to fall for another two years, thanks to renewable energy, an independent report has found.

Energy Minister Dr Anthony Lynham today welcomed forecasts from the independent Australian Energy Market Commission (AEMC) that a two-person household in SEQ could expect to be paying around $76 less than today by July 2020.

“Electricity prices in Queensland are now, on average, the cheapest of all mainland states in Australia,” Dr Lynham said.

“This is further evidence that our Affordable Energy Plan is working, with its measures to place downward pressure on electricity prices.

“Sadly, another independent report today shows that investment in electricity generation, and price wins, are being put at risk by the chaos and confusion in the Morrison Government over energy policy,” Dr Lynham said. Read the Energy Security Board report.

“In the face of the Morrison Government’s disastrous policies, the Palaszczuk Government will continue to drive our Affordable Energy Plan to place further downward pressure on Queenslanders’ power prices.”

The  AEMC residential price trends report says power prices in the SEQ had fallen 6.8 per cent over the past year, and will continue to fall on average by 2.8 per cent annually to 2020-21.

It says falling household prices are a flow-on of falling wholesale costs from increasing renewable generation capacity. More than 1000 megawatts of renewable energy generation capacity has come on line in Queensland in the past two years,

Dr Lynham said the real risk to power prices was the Morrison Government’s chaotic energy policy.

“Queensland has the lowest prices in the country, reliable supply, and a planned transition to renewables – all clear, consistent policy that gives investors confidence to build generation,” he said.

“Meanwhile, the New South Wales Government says energy investors are withdrawing new generation proposals because of the chaos and confusion in Canberra.

The Government is already making energy more affordable through:

• a $50 annual rebate already paid this year and with further $50 payment scheduled for 2019
• a two-year price cap on power prices
• interest free loans and grants to install solar panels and home battery systems.  

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Media inquiries: Jan Martin 0439 341 314