Falling wholesale electricity prices could give some businesses more confidence to switch from fossil fuels to renewable power, an electricity sector advocacy group says.<\/p>\n
Electricity Retailers and Generators Association chief executive Bridget Abernethy said wholesale prices were sitting at some of their lowest winter levels in more than a decade.<\/p>\n
She said July wholesale prices were averaging about $75 a megawatt-hour, making it the lowest average July price in more than 10 years.<\/p>\n
Electricity Authority forward price data also shows \u014ct\u0101huhu futures prices for 2027, 2028 and 2029 have fallen by about 30 percent over the past year<\/a>.<\/p>\n Abernethy said the fall was partly due to strong hydro storage but also reflected a bigger shift as more renewable generation and batteries came into the system.<\/p>\n “We’ve seen a lot of renewable generation come online recently, so there’s been a big upswing in renewable generation build, including batteries,” she said.<\/p>\n Abernethy said lower prices were a positive signal for businesses looking at switching process heat or upgrading transport fleets.<\/p>\n “Businesses are not looking for short-term fluctuations, they’re looking for those long, sustained, lower prices – that’s what will give them confidence,” she said.<\/p>\n Not all businesses could easily electrify, but the best candidates were light transport and low-to-medium temperature process heat, she said.<\/p>\n That included parts of agriculture, food and beverage, manufacturing, textiles and clothing, where electric heat pumps could meet businesses’ needs and lower costs.<\/p>\n Abernethy said some well-known businesses were already moving, including Whittaker’s Chocolate and Speight’s Brewery.<\/p>\n