The Australian Energy Market Commission (AEMC) has released its 10-year outlook on energy prices, and there is good news.
The report provides a 10-year outlook of residential electricity prices in the National Electricity Market (NEM). Note that the Northern Territory and Western Australia are not part of the NEM.
The modelling shows that, with more renewables and better energy technology, electricity prices could drop by 13% across Australia by 2034.
AEMC’s report takes a new approach, looking beyond electricity bills to calculate total energy spending – including gas and petrol – as homes switch to electric cars, heating, and cooking.
Households embracing electrification might save up to 70% on total energy costs, especially with electric vehicles cutting fuel bills by around $2,000 annually.
Each region has its own outlook:
- ACT leads with a projected 31% price drop.
- Queensland prices are projected to fall by 15%.
- South Australian prices are projected to fall by 15%.
- NSW prices are projected to fall about 14%.
- Victorian prices are projected to fall by about 9%.
- Tasmania’s prices might rise slightly.
Reaching the savings means ensuring the entire community can access smart investments and new technologies.
AEMC’s outlook depends on coordinated planning and timely investment in transmission, generation, and effective integration of household energy technologies.