Power prices to drop thanks to investment in renewables
Power prices will fall over the next two years thanks to investment in new renewable energy projects, according to a report from the Australian Energy Market Commission.
The Residential Electricity Price Trends Report, released today, estimates that prices for South Australian households will fall by an estimated 7.3 per cent each year over the next two financial years – a fall of about $280.
The report finds that the price decrease will be driven by addition supply into the grid from new wind and solar energy projects currently being developed.
And low income South Australians can access savings of up to $531 dollars off their bill through a deal struck between the State Government and Origin Energy. This is in addition to the $217 energy concession already available
Energy Minister Tom Koutsantonis said the report proved that the State Government’s Energy Plan was working, and that renewable energy was key to boosting competition in the market.
“Our plan includes the construction of a new solar thermal plant in Port Augusta and grid-scale battery at Jamestown, both of which will add competition to the market, putting downward pressure on power prices. We are also sourcing the electricity required to power our schools, hospitals and electrified rail until 2020 from SIMEC ZEN Energy, a new energy retailer with plans to invest $1 billion in renewable energy projects in South Australia,” said Mr. Koutsantonis said.
“We need as much new competition in the market as possible, which is why the State Government is supporting the current pipeline of renewable energy projects and driving investment in the sector through the $150 million Renewable Technology Fund.”