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Green energy is shielding Australia from a global power price shock
Renewable energy and batteries are decoupling Australia’s power prices from volatile global markets, helping shield consumers from severe electricity bill shocks emerging in other countries due to the ongoing war in Iran.
While Britain and parts of Europe and Asia are facing double-digit power and gas price hikes this year, households across much of eastern Australia will receive power bill cuts starting next month, driven by steep falls in the wholesale cost of electricity.
Energy executives and regulators credit the divergence to the rapid growth of renewable energy and battery systems, which have better-enabled the grid to capture cheap, abundant solar power during midday peaks and dispatch it after sunset when demand – and prices – typically spike.
Passive home batteries deliver “enormous benefits” to the grid, says AEMO – even if not o…
Australia’s huge and growing fleet of home batteries are delivering “enormous benefits” to the electricity grid, cutting system costs and power bills, even without being orchestrated as part of virtual power plants, the head of the Australian Energy Market Operator says.
AEMO chief executive Daniel Westerman says the market operator has been surprised by the positive, system-wide impact that hundreds of thousands of “passive” home batteries have had on the grid, changing the shape of demand even without high levels of third-party orchestration.
Westerman on Wednesday opened the Australian Energy Week 2026 conference in Melbourne with a market update that zeroed in on how batteries of all sizes are “fundamentally changing” the electricity system, while also changing the outlook for AEMO’s grid blueprint, the Integrated System Plan.
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