Australia’s electricity prices hit their lowest level in a decade, ranking 10th on the list of cheapest bills in developed countries

2022-09-21 0 By

An influx of renewable energy has pushed household electricity prices to their lowest levels in nearly a decade, a report shows.It is reported that Australia is one of the countries with the cheapest electricity price in the world. Among developed countries, Germany has the most expensive electricity price and Iceland has the cheapest electricity price.The latest analysis by the Australian Energy Council, which represents large electricity suppliers, shows that the cost of typical household electricity has fallen over the past three years as a series of changes put downward pressure on electricity prices, THE Australian Radio network reported Wednesday.Using data provided by the competition watchdog, the Energy Commission said the typical residential bill for the 2020-2021 period was A $1,434 a year, which is 8 per cent or A $128 lower than the electricity bill for the 2018-19 period.It is reported that the electricity price per household in Australia ranks the tenth from the bottom among developed economies in the world, which means that the electricity price in Australia is relatively cheap among developed economies in the world.After purchasing power parity adjustments, the Australian electricity price is 17.5 cents per KWH, compared with an average of 24.2 cents per KWH in OECD countries and a high of 40.9 cents per KWH in Germany.Globally, Germany, the Czech Republic and Poland have the highest electricity prices.While Germany’s high costs are linked to “ambitious decarbonisation targets”, the Czech Republic and Poland rely heavily on coal-fired power generation, which is behind their high electricity prices.Iceland, Norway and Canada, on the other hand, have the lowest electricity costs among the world’s rich economies, thanks to their vast supply of clean and cheap hydropower, according to the Australian Energy Commission.Matt Rennie, who runs Brisbane energy consultancy Rennie Partners with his wife, said the drop in wholesale costs reflected increased competition among generators that was forcing all power plants, including coal-fired ones, to lower prices as more renewable energy companies entered the market.Thus reducing the cost.He also said improvements in the efficiency of Australia’s transmission and distribution network after years of heavy investment in the early 2000s were another key reason for the cost reductions.Mr Rennie also said the downward trend in wholesale electricity prices was unlikely to continue as coal-fired power plants withdrew or were forced out of the market due to deteriorating economics.What’s more, renewable energy generators such as wind and solar farms will increasingly need to provide back-up or “stable” services to ensure they can meet demand even when the sun is not shining or the wind is not blowing.(Compiled by Wang Yuqing)