Electricity Prices Down 30% in Australia Expose Idiocy of Trump's Attacks on Wind, Solar

The government of the state of South Australia announced recently that its wholesale electricity price fell in Q4 ’25 to $37 AU per megawatt hour ( / MWh) (that would be $26.22 US). That’s the lowest wholesale electricity price in all of the continent of Australia. The reason the price is so low is because South Australia has a lot of wind, solar and battery power, and output was high late last year. Remember, October – December in Australia is spring into summer.

That’s 2.6 US cents per kilowatt hour. The average cost of electricity in the United States is roughly 17 cents per kilowatt hour, because it is mostly generated by expensive, dirty, planet-wrecking fossil fuels.

So here’s the thing: in Q3 of last year, the price of wholesale electricity was $104 AU / MWh.

That’s right. In one three-month period, the price fell by a third.

Since South Australia is demonstrating that wind, solar and battery can cause the wholesale price of electricity to plummet, it is also pulling the curtain from the Trump administration’s con game in the US.

It was not a matter of usage falling off. The government says, “underlying demand in South Australia ticked up by 1.2 per cent to a fourth quarter record high of 1,624 MW.”

Of course, how the fall in the price of wholesale electricity gets translated into consumers’ home electricity bills is politics, not engineering.

Some 74% of South Australia’s electricity consumption is provided by renewables, and the state plans to make that 100% by 2027, in only two years. Wind, solar and battery generated 100% of the state’s electricity for 99 days (27% of the time) in 2024, the last year for which full data are available as yet.

50% of homes in the state have rooftop solar. South Australia has been a pioneer in mega-batteries combined with its solar generation. The country as a whole has 3 gigawatts of battery storage capacity. South Australian needs more battery build-out, so as to smooth out the excess generation from rooftop solar at noon and during early afternoon, which has been producing negative energy pricing, forcing utilities to pay people to take their electricity.

South Australia, despite its small population of about 2 million, is widely seen as a demonstration project for what the renewables revolution can mean for the lives of people in the industrialized democracies. Its Labor government has been committed to the project. Only a decade ago, most of its electricity was coal-generated. Alas, its Liberals (i.e. conservatives) are now campaigning on more fossil fuels. Since so much of the progress was grassroots, with people just installing solar panels, the transformation seems difficult to halt or even slow substantially.

What the state is showing us is that wind, solar and battery power, when combined, are extremely inexpensive. Moreover, there is every prospect of solar panels becoming cheaper, more efficient, and less bulky over the next decade as scientific research burgeons. Renewables are already much less expensive than fossil fuels.

What the state is showing us is that wind, solar and battery power, when combined, are extremely inexpensive.

It is true that because they are a new source of energy, they are attended by construction costs, whereas old coal and gas plants built years ago have already sunk that cost. But wind and solar are now so cheep that in many localities it is less expensive to build a new solar farm and operate it than just to keep an old gas or coal plant in operation.

Since South Australia is demonstrating that wind, solar and battery can cause the wholesale price of electricity to plummet, it is also pulling the curtain from the Trump administration’s con game in the US. By using the might of the federal government to bolster coal and gas, Trump and his minions can keep expensive and dangerous sources of power in place, making you pay more for your electricity and arranging for your money to line the pockets of his Big Carbon campaign donors. If fossil fuels were competitive, Trump wouldn’t have to try so hard to stall permitting for new wind and solar projects.