Electricity prices in several Australian regions are set to fall, helped by record renewable energy generation and the rollout of more low-cost clean energy, the government says.

The price cuts come amid continued disruption to global energy markets due to the conflict in the Middle East, which has pushed up international energy prices and heightened supply uncertainty.

The Australian government said its plan to provide cheaper, cleaner energy and a better deal for households aims to shield Australians from the pain of higher global energy prices.

The country's main energy grids recorded more than 50 percent renewable generation for the first time at the end of last year, pushing wholesale energy prices down and beginning to flow through to household electricity bills, Energy Minister Chris Bowen said last month.

As more renewable energy generation and storage facilities are rolled out, Australia is reducing its reliance on unreliable coal-based power generation and putting further downward pressure on bills, he said in a statement.

"Our plan has two parts: cheaper, cleaner energy and a better deal for households, and that's what we're delivering with the latest regulator's benchmark for energy bills showing declines across households and businesses," he said.

According to the Australian Energy Regulator, a body overseeing the national electricity and gas markets, the household electricity usage prices in several regions will fall by up to 10.7 percent. Besides, the price paid by small businesses will fall by up to 20.9 percent.

"We've got the best sun and wind in the world, and we're using our sovereign renewables to shield our grid from global energy volatility and to bring down your energy bills," Bowen said.

The Australian Energy Regulator's chair, Clare Savage, said the decision reflects easing cost pressures in parts of the electricity supply chain and addresses industry and consumer feedback to ensure prices remain fair and workable in practice.

The price reductions reflect easing costs across most components, particularly in wholesale energy, where lower electricity contract prices, reduced spot price volatility, and increased output from wind and battery generation during evening peaks were key factors, Savage said.

"Despite the uncertainty created by the conflict in the Middle East, wholesale energy costs have not increased," she said.

The electricity price cuts will be implemented in New South Wales, South East Queensland and South Australia from July 1.

'Unreliable' stations

Australian social commentator John Queripel, based in Newcastle, New South Wales, said the recent demolition of the stacks at the region's Liddell coal-fired power station was an example of unreliable coal-powered stations being phased out.

Meanwhile, renewable energy construction, mainly solar, is gathering pace, Queripel said.

"Batteries are the other major change driving the fall in power bills for the average household," he said. "Just as Australians have been world leaders in taking up rooftop solar panels (photovoltaic cells), now they are proving again to be (world leaders with the use of storage) batteries."

Government policy has played a positive role in driving the transition to clean energy and helping households save costs, he said.

However, surging electricity demand from data centers, driven by the rapid development of AI, could become a challenge for grid capacity and consumer costs in the next stage, he added.

China's large-scale industrialization of related renewable energy technologies has helped drive down costs, benefiting Australian households, Queripel said.

Future cooperation between the two countries would also help Australia improve energy affordability and resilience and achieve its climate goals, he added.