Power prices forecast to fall over next two years but AEMC warns they won't last

Power prices in Australia rose almost 11% during 2017 but a new forecast says they will fall over the next two years because of the entry of 5,300 MW of new generation capacity into the national electricity market – most of it renewable.

The Liddell power station in New South Wales. Power prices in Australia rose almost 11% during 2017. 

A new assessment from the Australian Energy Market Commission predicts power prices will fall over the next two years, beginning in mid-2018.

But the AEMC, which played a significant role in designing the Turnbull government’s proposed national energy guarantee, says the price reductions won’t last if governments don’t settle an energy policy that provides incentives for investing in dispatchable power.

Read Katherine Murphy’s story on The Guardian - “Power prices forecast to fall over next two years but AEMC warns they won't last.”