Higher cost of fossil fuels drives wholesale power prices up despite falling market share

Aemo report shows renewable energy accounted for record share of generation as NEM emissions fell to lowest quarterly total on record

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Electricity demand hit a record low in several states during a milder-than-usual end to 2021, but average wholesale prices were up from a year earlier due to the higher cost of fossil fuels even as their share of the market dived.

The December quarterly energy dynamics report by the Australian Energy Market Operator (Aemo), released on Friday, showed renewable energy set generation highs in the national electricity market (NEM).

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