Power prices are set to fall within three years as more renewable energy enters the electricity grid.

The Australian Energy Market Commission forecasts a drop in prices will be driven by the increase of renewable energy.

South-East Queensland prices are expected to fall by $278 annually by 2022, while NSW prices are tipped to fall by $107.

No new investment in gas or coal is forecast beyond current projects that have been approved.

MP Craig Kelly tells Mark Levy it’s not guaranteed that power prices will come down.

“That would be welcome if it does [come down] but there’s still a lot of water to flow under the bridge until then.

“The great problem is… what happens if we have another coal-powered station closing down?

“My concern is you force all this extra solar and wind into the grid and what you might be doing is actually forcing your existing coal generators to retire prematurely, which will then have the exact opposite effect and push electricity prices higher.”

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