In Australia, record levels of renewable energy have driven down electricity prices and reduced consumers’ need to access the grid for power.
In an interview with news.com.au, Victoria University energy expert Associate Professor Bruce Mountain explained that Australia’s energy system is complex and impacted by many factors. However, he said it was fair to say that the spread of solar panels on rooftops and the addition of new solar and wind farms to the grid meant spot power prices were often zero during the middle of the day, and regularly lurched into negative territory.
This has created the situation where coal-fired power stations actually pay the market to dispatch their electricity, rather than being paid for it.
“Because that’s cheaper than switching off [the power station] and having to restart again,” Prof Mountain said.
Interest rates unlikely to rise next year
While inflation has risen in Australia due to increased demand for goods rather than services and global supply chain impacts during the pandemic – the overall effect has been modest in comparison to international markets and is predicted to moderate over the next 18 months.
Mr Lowe said the latest data and forecasts do not warrant an increase in the cash rate next year.
“The economy and inflation would have to turn out very differently from our central scenario for the Board to consider an increase in interest rates next year,” he said.
Join the solar revolution
With summer just around the corner, we’ll soon be cranking our air conditioners and cooling off in our pools – two extremely energy-intensive features of many homes. Not only does solar compensate for that hefty energy usage but, during summer, solar systems can generate twice the electricity than in the short days of winter.
If you aren’t already reaping the benefits of solar power, we can help.
Energy Matters has assisted over 30,000 Australians in their transition to clean energy. We can guide you toward solar and/or battery storage solution that fits your lifestyle and budget. Receive up to 3, obligation-free quotes from our trusted network of accredited solar installers. It’s fast, free, and takes the hassle out of shopping around.