A surge in renewable energy share has broken another record, with renewable energy last month supplying more than a quarter of the National Electricity Market (NEM).

That’s the finding of the Australia Institute’s latest quarterly Emissions Audit.

The audit shows a “surge in wind and solar projects” is now acting as one of the only things reducing national power prices.

In August, grid renewable energy, including hydro, supplied 23 per cent of all generation to the market.

Variable renewable sources, such as wind and grid-scale solar, supplied 11 per cent and by adding rooftop solar power, this figure rose to 25.6 per cent of total renewable generation.

Renewable energy’s share of total grid supply, including rooftop solar, in the 12 months to August was 19.7 per cent.

The Australia Institute report shows this figure eclipses the previous record share, reached in early 2014 during the dying days of the former Labor government’s Emissions Trading Scheme (ETS) legislation.

It’s also not far short of the 2020 Renewable Energy Target (RET) for large-scale renewable energy.

Wind energy provided 55 per cent of power generation to South Australia in August.

Gas supplied the remaining 45 per cent, while wind and rooftop solar energy combined supplied nearly 60 per cent of South Australia’s total power requirements.

This meant that South Australia became a net exporter of electricity to Victoria.

It also had the lowest wholesale prices in the NEM at $72/MWh, 19 per cent lower than New South Wales, which saw the highest price at $93/MWh.

Victoria’s wholesale price of $79/MWh was the second lowest in the market. Its total share of renewable energy in August reached 18.9 per cent, up from just 12.3 per cent in 2015.

As a result, the report predicts that on current trends, Victoria will comfortably meet its 25 per cent RET by 2020.

In the four months since the end of April, wind generation connected to the NEM grid has increased by 14 per cent.

Similarly large-scale solar power increased from a relatively low base to 93 per cent.

The Australia Institute report also forecast a continued surge in renewable energy over the next two years.

Quoting official Energy Security Board numbers, the report suggests that by 2020 wind generation capacity will be 41 per cent higher than today, while total solar connected will be three times higher.

This additional electricity flowing into the NEM equates to the current total annual output from Eraring, the largest coal-fired power station in Australia.

Audit author Dr Hugh Saddler said; “This volume of new generation is likely to significantly increase competition in the NEM wholesale electricity market, thereby putting downward pressure on prices.”