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22 October 2025

Lessons from Australia's wildly volatile power market, with Gero Farruggio

Let’s Talk Energy as we take a closer look at Australia’s power markets, which have become the most volatile in the world, with the Head of Rystad Energy’s business in Australia, Gero Farruggio.

Episode description

Let’s Talk Energy as we take a closer look at Australia’s power markets, which have become the most volatile in the world, with the Head of Rystad Energy’s business in Australia, Gero Farruggio. Australia has large domestic reserves of coal and natural gas and some of the best wind and solar resources in the world. However, the country still faces wild swings in power prices and potential supply shortages. Some of Australia’s states and territories have the most volatile power markets globally, including some of the longest periods of negative power prices. The country’s climate goals and energy policy are a contentious domestic issue and likely to come under global scrutiny as Australia pushes to host the COP 31 climate conference next year. What is causing Australia’s highly variable power prices? Are they likely to continue? Will the government keep to its ambitious goals for renewable power capacity or turn to other sources to ensure stable supply and affordable prices? What can other countries struggling to integrate growing shares of renewable power learn from Australia’s experience?