Australia’s electricity predicted to be cheaper in 2023, helped by green power and lower gas prices

Electricity for consumers will be cheaper in 2023 as new generation capacity enters the power grid, including 1,667 megawatts of solar and 2,580 megawatts of wind, the Australian Energy Market Commission said. The AEMC’s annual price assessment projected that power prices would decrease until 2021-22 and then potentially increase during 2022-23. But prices in 2023 were expected to be lower than they are now. Households are expected to pay $120 less in 2023. The price reductions are primarily driven by a decline in wholesale electricity costs across most Australian states and territories, and lower gas prices. The potential price increase in 2022-23 relates to the ageing Liddell power station in New South Wales closing. The AEMC said supply could tighten during this period although it noted the ultimate outcome “ will likely be affected by the recent announcement from the NSW government about the electricity infrastructure roadmap”. The Berejiklian government’s electricity infrastructure roadmap will support 12 gigawatts of renewable energy and 2 gigawatts of energy storage, with a focus on pumped hydro, over the next decade. The state’s energy minister, Matt Kean, said this plan was about ensuring the coal transition was orderly so new generation was in place […]

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