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Despite its small population of about 2 million, the state of South Australia is widely seen as a demonstration project for what the renewables revolution can mean for the lives of people in the industrialized democracies.
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.
"There is no 'firefighting' in these kinds of conditions," said one meteorologist. "There is only saving as many lives as possible and getting the heck out of the fire's way."
Several major wildfires burned out of control in California's Los Angeles County on Wednesday as roaring winds fueled the rapid spread of the blazes, forcing tens of thousands to evacuate as state, local, and federal officials mobilized resources to confront the emergency.
Los Angeles Mayor Karen Bass wrote on social media late Tuesday that the city is "working aggressively" to stem the wildfires, which scientists and government officials characterized as uniquely devastating.
"Emergency officials, firefighters, and first responders are all hands on deck through the night to do everything possible to protect lives," California Gov. Gavin Newsom said early Wednesday. The governor noted that more than 1,400 firefighting personnel have been deployed to "combat these unprecedented fires."
The Palisades, Eaton, and Hurst fires broke out on Tuesday. It quickly exploded amid what the National Weather Service described as "extremely critical fire weather," with wind gusts up to 99 mph propelling the devastating blazes. The extreme winds forced emergency crews to ground aircraft that were working to contain the fires.
"For some context, fire crews are up against near hurricane-force winds occurring mid-winter in rugged terrain during a drought at night," wrote meteorologist Eric Holthaus. "There is no 'firefighting' in these kinds of conditions. There is only saving as many lives as possible and getting the heck out of the fire's way."
"The emergence of extreme wintertime wildfires in California presents one of those classic 'this is climate change' moments."
The Eaton fire, which broke out Tuesday evening in the Pasadena area, "spread so rapidly that staff at a senior living center had to push dozens of residents in wheelchairs and hospital beds down the street to a parking lot," The Los Angeles Times reported.
"The residents waited there in their bedclothes as embers fell around them until ambulances, buses, and even construction vans arrived to take them to safety," the newspaper added.
The three fires have together burned thousands of acres so far and destroyed or endangered tens of thousands of homes and buildings, according to Newsom's office. So far, at least 19 school districts have announced complete or partial closures due to the fires.
Video footage posted to social media showed residents watching in horror as flames surrounded their homes:
This is by far the craziest video from the fire in Los Angeles. This guy is filming huge walls of fire surrounding a house they're in, and there's another person and a dog. I have no idea why they didn't evacuate or what happened to them. Let's hope they're okay. #PalisadesFire pic.twitter.com/QYtsBSKvdl
— Sia Kordestani (@SiaKordestani) January 8, 2025
Another video shows residents attempting to salvage as many belongings as possible before fleeing:
Video of the moment my friend and I abandoned his house after we tried to save what we could. Please be praying for him and his family @orlylistens
Location: North of Rustic Canyon#cawx #PalisadesFire #fire #California pic.twitter.com/fie6Ywkmz3
— Tanner Charles 🌪 (@TannerCharlesMN) January 8, 2025
"There has been a recent massive increase in wildfires in California but really, a fire this big in January? This is unprecedented," scientist Hayley Fowler wrote on social media. "One of many extreme events fueled by the climate crisis."
Holthaus wrote Tuesday that Southern California is "facing a rare and dangerous juxtaposition of extreme winds and midwinter drought," the meteorologist described as "a worrying example of the state's expanding wildfire threat as climate change worsens."
"The National Weather Service defines 'extremely critical' fire weather as sustained winds over 30 mph and relative humidity of less than 10% in drought conditions and temperatures warmer than 70 degrees," Holthaus observed. "This is the first time in history these criteria have been met anywhere in the United States during January."
"The emergence of extreme wintertime wildfires in California," he added, "presents one of those classic 'this is climate change' moments: A specific set of weather conditions are now occurring in such a way to produce the potential for rare disasters to become much more common."
"This historic milestone marks a significant win for clean energy advocates, for ratepayers, and for people and communities across the country," said one climate leader.
U.S. climate advocates this week are celebrating new federal data that show wind and solar have generated more power than coal during the first seven months of 2024 and are on track to do so for the entire calendar year.
"This is the kind of news we like to see!" Food & Water Watch said of the data on social media Tuesday. "Ensuring a livable climate for all depends on us making a swift and just transition to clean energy like wind and solar."'
The group shared reporting from E&E News, which noted that "the milestone had been long expected due to a steady stream of coal plant retirements and the rapid growth of wind and solar. Last year, wind and solar outpaced coal through May before the fossil fuel eventually overtook the pair when power demand surged in the summer."
"Renewables' growth has been driven by a surge in solar production over the last year," the news outlet continued. "The 118 terawatt-hours generated by utility-scale solar facilities through the end of July represented a 36% increase from the same time period last year, according to preliminary U.S. Energy Information Administration figures. Wind production was 275 TWh, up 8% over 2023 levels. Renewables' combined production of 393 TWh outpaced coal generation of 388 TWh."
Sierra Club executive director Ben Jealous said in a statement Wednesday that "wind and solar energy has long been the most cost-effective choice for utilities, but now it has also outpaced coal generation as the top source of energy, further demonstrating that clean energy is critical to a reliable and affordable grid."
"This historic milestone marks a significant win for clean energy advocates, for ratepayers, and for people and communities across the country that simply want to breathe clean air, drink safe water, and worry less about climate disasters like floods and wildfires," Jealous continued.
"For decades, the Sierra Club has fought to move America Beyond Coal and onto a clean, reliable, and affordable grid," he added. "To date, the Beyond Coal campaign has secured the retirement of 385 coal plants and counting, and on August 16th, we celebrate the two-year anniversary of the Inflation Reduction Act, which made historic investments in clean energy and clean energy jobs. Together, families across the country are saving money, enjoying good paying jobs, breathing clean air, and drinking safe water."
Along with celebrating the federal legislation signed in 2022 by President Joe Biden, Sierra Club highlighted a state law signed the previous year by Democratic Illinois Gov. JB Pritzker.
"Illinoisans should be proud of the work we've done to close our largest coal plants and leverage the power of clean energy to drive economic growth while reducing pollution that's harmful to public health and our planet," said Jack Darin, director of the Sierra Club's state chapter. "Thanks to the Climate and Equitable Jobs Act of 2021, Illinois workers are now building the clean energy that is replacing old, dirty fossil fuels and bringing a brighter future to communities across our state."
Celebrations over the "major power milestone" come as Americans prepare for a November presidential election in which Democratic Vice President Kamala Harris and Minnesota Gov. Tim Walz—who are endorsed by a range of climate groups—are set to face former Big Oil-backed former Republican President Donald Trump and U.S. Sen. JD Vance (R-Ohio).
During an April event in Florida, Trump told fossil fuel executives that if they invested just $1 billion into his campaign, he would gut the Biden-Harris administration's climate regulations. The Washington Post reported Tuesday that billionaire Continental Resources founder then "called other oil executives and encouraged them to attend fundraisers and open their wallets."
While Hamm is reportedly sharing Big Oil's priorities with the Trump-Vance team, their approach can be summed up by a phrase they've said on the campaign trail: "drill, baby, drill."
Although the Republican candidates have tried to distance themselves by the Heritage Foundation-led Project 2025, the right-wing policy agenda—crafted by many Trump allies—has also alarmed climate campaigners.
Noting the new energy data, Antonia Juhasz, a senior researcher on fossil fuels at Human Rights Watch, said Tuesday: "This transformation is due in large part to federal government policy which has specifically incentivized renewable energy development and deployment and increased regulation on the harms of fossil fuels. All of which are specifically targeted for removal in Project 2025."
As Common Dreams reported earlier Wednesday, an analysis from the think tank Energy Innovation shows that a GOP administration implementing the Project 2025 plan would increase U.S. greenhouse gas emissions by 2.7 billion metric tons by 2030 compared to the current trajectory.