How does using wholesale energy help Australia reach a 100% renewable future?

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Wholesale prices rise and fall in response to how much renewable energy is in the grid*. 

Since renewables are now the cheapest form of power, wholesale prices tend to fall when there's more renewable energy being generated and entering the grid. For example, in the middle of the day. When people can see that energy is cheaper when it is greener, they tend to shift their behaviour, using more energy at cheaper, greener times. 

Flat rate energy plans don't make it possible for people to see these price fluctuations - or benefit from them. As a result, there's often an excess of unused renewable energy in the middle of the day, and not enough in the evening peak time. 

This mismatch between when renewable energy is being generated and when energy is mostly being used discourages further investment in renewable power since investors in renewable energy generation (solar farms, wind turbines) can’t be sure if there will be enough demand for their power. If there isn't enough demand, they can’t get a return on their investment, and they won’t build more wind and solar farms.

If we are to increase investment in renewables and take Australia to a 100% renewably powered future, we must shift more energy users’ demand to times when there are a lot of renewables in the grid. In other words, incentivise more people to chuck on a load of laundry at 11am, not 7pm. 

At Amber, we believe that providing access to the wholesale price of power, which goes up and down depending on how much renewable energy is in the grid, is the key to empowering people to use more renewable energy. We also provide technology that helps those producing renewable energy in the day sell it back into the grid when it's needed most - i.e. in the evening peak. Unlike other electricity retailers, Amber's whole model is focused on solving this core problem that is holding Australia back from 100% renewable energy. 

By using more energy when it is cheaper and greener, you are helping to drive more demand for renewable energy and more investment in it. The more renewable energy we all use today, the more we will get tomorrow. And the more we can save on our energy bills, too. 

It's a win/win. 

 

* Other factors that drive wholesale prices up and down include the amount of demand on the grid and whether generators are working!

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