As Renewable Energy Goes Up, Prices Come Down

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As Renewable Energy Goes Up, Prices Come Down
Website- Solar Warehouse Australia
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Renewable energy in Australia
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• It is often said that while the switch to
  renewable energy is laudable, necessary and even
  inevitable, it is nonetheless expensive. But not
  according to the Australian Energy Market
  Operator (AEMO), which is the countrys
  independent body for ensuring we all have access
  to reliable, safe, sustainable and affordable
  energy.
• Published just this week, the AEMOs latest
  Quarterly Energy Dynamics report for the final
  quarter of 2019 explained not only that growth
  in renewable energy in Australia is expanding at
  record rates. According to the report, total
  renewable output comprised mainly of solar and
  wind has risen steadily across the years, and
  now accounts for 11 of the energy mix.

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• Renewable energy records broken in 2019
• Highest share of energy market demand Highest
  renewable output 6,396 MW on 12 November 2019
  Highest solar output 2,421 MW on 4 December.
• Record (renewable) generation growth in 2019 is
  expected to continue into 2020, as the large
  amount of new capacity currently being accredited
  is likely to reach full generation by mid-2020,
  the AEMO report stated.
• The same report also revealed that, at the same
  time, wholesale electricity prices are falling
  sharply.

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• That is despite the fact that it was a
  particularly challenging year for the energy
  sector, due mainly to extreme heat, outages and
  the changing supply mix. 2019 was the hottest and
  driest on record in Australia, which had a major
  impact on hydro generation output, and the
  country is still reeling from the tragic
  nation-wide bushfires.
• In the final days of December, prices hit a high
  of 6,443/megawatt hours in Victoria, and there
  was particular volatility in South Australia as
  well.
• But overall, prices were actually much better
  than usual. Over the entire Q4 quarter, wholesale
  spot electricity prices averaged just 72/MWh
  an almost 20 percent reduction compared to a year
  ago and the lowest quarterly average since 2016.

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• According to the AEMO, the downward pressure on
  prices was because energy supply from wind farms,
  solar farms and gas-powered generation was
  higher. Taken alone, wind and solar output was
  39 higher than one year ago.
• The increased solar output contributed to a
  decrease in black coal-fired generation it was
  down some 1,061 MW compared to the Q4 report in
  2018, which is lower than it has been since 2016.
  
• The AEMO also said coal-fired generation took a
  hit due to supply issues at the Mr. Piper power
  station in NSW, and that wholesale gas prices
  continued to fall.

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