Australian Energy Regulator board member Jarrod Ball said seasonal weather patterns and tight market conditions had contributed to the higher prices during the quarter.

“While we would expect to see wholesale prices rise as weather in southern states cools and demand rises to keep people warm, the combined impact of cold snaps, planned and unforeseen network outages, combined with rebidding and lower solar and wind output, has pushed electricity prices higher than this time last year,” he said.

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Westerman said the market conditions underscored the key role that batteries, pumped hydro and flexible gas-powered generation would play as “renewable generation becomes more dominant”.

In its 25-year road map, released last month, AEMO determined the best and lowest-cost path for Australia’s energy transition was to develop a grid dominated by renewables, firmed up with battery and hydroelectricity storage, and backed up by gas-powered generation.

However, it warns new projects must be urgently accelerated as not enough are being built in time to compensate for the looming retirements of more coal-fired power stations.

A spokesperson for Energy Minister Chris Bowen said the data from AEMO and the regulator showed renewables were the cheapest sources of power. “When we’re forced to rely on coal generating, and ageing unreliable assets, it drives prices up,” the spokesperson said.

“The faster we can get more reliable renewables into the system, the better it will be for energy bills and energy reliability.”

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