Renewables will drive 'steep decline' in wholesale electricity price in Australia - report

Exclusive: Frontier Economics' modelling commissioned by government says 6,000MW of renewable capacity entering market will reduce prices in 2018-20Modelling commissioned by the Turnbull government as part of its efforts to back in the national energy guarantee says renewables will drive the first wave of price reductions under the policy. It also floats substantial regulatory intervention to stop the electricity market becoming even more concentrated.The work by Frontier Economics, obtained by Guardian Australia, says a steep decline in wholesale electricity prices forecast between 2018 and 2022 is due to the entry of 6,000MW of renewable capacity which has already been incentivised by the existing renewable energy target. Continue reading...