WHOLESALE MARKET QUARTERLY REPORT Q3 2023

AER Wholesale Market Quarterly Report

• “Wholesale energy prices and demand fall in July to September period”, that is the theme from the latest AER Wholesale Market Quarterly Report.
• Some key findings
  • “Rooftop solar in September was 41% higher than last September, reducing demand from the grid.”
  • “lower demand was largely due to warmer than average temperatures.”
  • “National Electricity Market (NEM) prices were under $100 per MWh in most regions, and less than half Q3 2022 prices.”

Market Report

Key electricity market observations for this month

• There has been some reasonable recent falls in the wholesale electricity markets of in the order of 20% since May 2023
• Prices are now the lowest that they have been in the last 18 months
• Large peak electricity contract rates are around 12c/kWh (QLD) and 21c/kWh (NSW) based on 3 year average
• Futures prices have also continue to reduce

Our recommendation is to start looking at any upcoming contracts renewal now while market conditions are favourable.

It is also recommended to do these renewals before summer which historically noted for higher prices driven by extreme weather events and high demand from hot weather.

Article Contributed by HumEnergy