Australia’s energy regulator has warned that consumers may be overpaying for electricity, as traditional coal and gas generators continue to dominate the market during peak times, despite the rapid growth of new wind, solar, and battery projects over the past two years.
Clare Savage, Chairwoman of the Australian Energy Regulator (AER), explained that a recent review of the electricity market uncovered significant concerns. One of the main issues is the concentration of power among coal and gas operators, even though renewable energy sources now lead the market during the daytime.
While the regulator has not labeled the market as “broken,” Savage emphasized the need for reform, stating that some market features are not currently operating in the long-term interests of consumers. “There’s room for improvement,” she said in an interview with The Australian Financial Review.
The review arrives at a critical moment for the energy sector as it moves away from coal. With increasing renewable energy capacity being added to the grid, governments are working to extend the life of coal plants, such as EnergyAustralia’s Yallourn in Victoria and Origin Energy’s Eraring in New South Wales. At the same time, significant global investment is being poured into solar, wind, and battery projects aimed at reshaping Australia’s energy future.
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