Australia’s Climate Council explains there are 5 reasons why power prices have been rising.
These include Australia’s reliance on expensive fossil fuels, the high cost of gas, ageing coal-fired power stations, the need for more renewables and storage like batteries, and – in homes – shifting to electricity and increased efficiency.
While around 40% of our power now comes from renewables, the majority of our electricity still comes from coal and gas.
Electricity made from fossil fuels is far more expensive than renewable power. In 2024, the average price was almost twice that of electricity from renewables. This is due to ageing coal plants and high-cost gas.
The explainer from the ABC linked below provides great detail on how prices are set in Australia and why gas often sets the price for what we pay for electricity.
Read more:
- ABC Online: What do more renewables mean for our electricity system?
- Climate Council: Five reasons why your power prices are sky high and rising
