Australia has just hit a major milestone in its shift to renewable energy. For the first time, more than 50% of the country\u2019s electricity was powered by renewable sources in a single quarter. This momentous shift is not only a victory for the environment but is also playing a crucial role in driving down electricity prices\u2014just as consumers are facing rising living costs.<\/p>\n\n\n\n
According to the latest data from the Australian Energy Market Operator (AEMO)<\/a>, renewable energy\u2014mainly from solar, wind, and large-scale battery storage\u2014powered more than half of the national grid during the final quarter of 2025. The achievement has led to wholesale electricity prices plummeting by 44% compared to the same period last year, dropping to just $50 per megawatt-hour.<\/p>\n\n\n\n This shift to renewables has had a significant impact on the market. Historically, coal and gas plants have dominated the energy mix, but their contribution has steadily decreased as renewables have taken on a larger share. This has also resulted in the lowest seasonal share of coal-fired power since records began and the lowest reliance on gas since 2000.<\/p>\n\n\n\n While the wholesale price drop is a clear positive for the environment, it also translates into potential savings for consumers\u2014though the path from wholesale to retail pricing is a bit more complicated. Lower wholesale prices have already been reflected in future contracts for large industrial users, and this could help prevent significant increases in energy bills for everyday households, explains SMH.<\/a><\/p>\n\n\n\n However, it\u2019s not all smooth sailing. The Albanese government had previously promised $275 off the average energy bill by 2025. Although there\u2019s been progress, the absence of the $75 quarterly energy rebate will leave some households feeling the pinch, especially if retail electricity prices don\u2019t drop as much as expected.<\/p>\n\n\n\nWhy This Matters for Consumers<\/h2>\n\n\n\n