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Australia's Duck Curve Transformed: Batteries Drive Lower Electricity Prices

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Australia’s Duck Curve Transformed: Batteries Drive Lower Electricity Prices

Clip title: Australia Killed the Duck Curve (With Batteries) Author / channel: Engineering with Rosie URL: https://www.youtube.com/watch?v=jltRq_KlGH4

Summary

This video, presented by mechanical engineer Rosie Barnes, explains why electricity prices in Australia are finally dropping for most households and small businesses, attributing the change to the increasing integration of renewable energy and battery storage into the grid. The core concept revolves around transforming the “duck curve” of electricity demand and generation into a more stable “platypus curve.”

Barnes first details Australia’s unique electricity pricing system, where generators bid from cheapest to most expensive every five minutes. The grid then dispatches power from as many generators as needed to meet demand. Critically, all generators receive the price set by the last and most expensive generator dispatched in that five-minute window. This system meant that while abundant midday solar provided near-zero cost power (creating the “belly” of the duck curve, often leading to negative prices as coal plants bid low to stay online), the evening peak, when solar disappears and demand spikes (the “head” of the duck), was traditionally met by expensive gas peaking plants. Consequently, even with cheap solar, gas prices often dictated the overall market price during these critical hours, preventing consumer bills from reflecting the true cost reduction of renewables.

The significant change that has flattened this steep evening price spike, thus turning the duck curve into a platypus curve, is the widespread adoption of grid-scale batteries. These batteries charge during the day using cheap, surplus solar power, effectively soaking up the excess and flattening the duck’s belly. Crucially, they then discharge during the evening peak, undercutting the previously dominant gas peaking plants. Data from late 2024 and 2025 shows a dramatic decrease in evening peak prices from nearly 100/MWh, with batteries now setting the marginal price during the evening peak almost 40% of the time.

This structural shift is now directly impacting consumer bills. From July 1st, electricity prices are set to fall by 3-10% for most Australians. Furthermore, new initiatives like the “Solar Sharer Offer” provide households (even those without rooftop solar) three hours of free power during the midday solar surplus. This encourages consumers to shift high-demand activities like running dishwashers or charging electric vehicles to these free periods, further balancing the grid. Barnes concludes that this represents a successful and gradual energy transition, where technological advancements like battery storage create economic shifts that ultimately benefit consumers.

Video Description & Links

Description

If renewables are so cheap, why hasn’t your power bill reflected that? Well, actually, now it is. From July this year, electricity prices are dropping for most Australian households and small businesses. But the more interesting question is why it took this long, and what actually changed. To understand that, you need to know about the duck curve, and how we’re turning it into a platypus.

Sources: https://www.abc.net.au/news/2026-05-26/power-prices-fall-in-latest-dmo-release/106718250

https://www.smh.com.au/business/consumer-affairs/power-bills-set-to-fall-despite-iran-uncertainty-20260525-p600kr.html

https://www.aer.gov.au/system/files/2026-03/AER%20-%20Draft%20determination%20-%20Default%20market%20offer%202026%E2%80%9327%20-%2019%20March%202026.pdf

https://www.energy.gov.au/news/solar-sharer-offer-cut-electricity-bills

⚙️The Engineering with Rosie team: Rosemary Barnes - Presenter, Producer & Writer

Tags

renewable energy, mechanical engineering, circular economy, clean energy transition, climate change, green economy, stem, women in stem, stem education, Rosemary Barnes, Engineering with Rosie, women in engineering, technology, environmental science, environmental engineering, engineering tutorials, sustainability, science news, engineering news, explainer video, engineering explained, new energy

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