The Queensland Renewable Energy Council (QREC) has welcomed a new power price determination showing that increased wind, solar and storage are putting downward pressure on electricity prices.
The Australian Energy Regulator’s (AER) draft Default Market Offer (DMO), which serves as the reference price for retailers when advertising market offers, shows annual residential power prices falling by 10.1%—or up to $216 per household, per year —in 2026–27. Small business benchmark prices are set to drop by 12.8%, or up to $550.
The AER report highlights that, for wholesale electricity, “the reduction in prices and volatility has been driven by increased output from wind and battery generators, which, along with fewer coal plant outages, has reduced reliance on gas and hydro capacity during evening demand peaks.”
QREC Chief Executive Officer Katie-Anne Mulder said the findings reflect what industry and many Queenslanders have long understood—that more renewable energy and storage in the system delivers more affordable and stable electricity.
“The draft AER determination provides independent regulatory confirmation that Queensland’s energy transition is working, delivering more affordable and more reliable energy,” she said.
“Renewable energy now provides more than 30% of Queensland’s electricity generation.”
Ms Mulder said the outcome underscores the importance of the Queensland Government’s Energy Roadmap, which aims to drive investment in renewable energy, storage and transmission infrastructure while delivering long-term affordability and reliability, and supporting the orderly exit of coal-fired generation as it reaches the end of its technical life.
“The Energy Roadmap is about putting downward pressure on prices while ensuring Queenslanders have access to reliable and secure electricity,” she said.
QREC also noted that continued investment certainty will be essential to maintaining this momentum.
A separate draft AER determination will be released for regional Queensland.