How Australia’s energy markets are evolving
How Australia’s energy markets are evolving
AEMO’s latest Quarterly Energy Dynamics (QED) report highlights how renewables, batteries and consumer energy resources continued to reshape electricity and gas markets through the June quarter.
During the quarter in the National Electricity Market (NEM), 14 new generation and storage projects totaling 3.9 gigawatts (GW) were commissioned to full output, while household battery capacity grew by 3,283 megawatt hours (MWh) or 41%. Grid-scale battery capacity more than doubled in the NEM over the past year to exceed 9 GW.
AEMO Executive General Manager, Policy & Corporate Affairs, Violette Mouchaileh said: "Record renewable generation, combined with growing battery storage and consumer energy resources, continues to reshape Australia's energy markets."
"These technologies are changing demand patterns, supporting system reliability and increasing the amount of lower-cost energy available across the markets."
These changes helped reduce reliance on higher-cost thermal and hydro generation, contributing to a 47% fall in average wholesale electricity prices across the NEM compared with the same quarter last year – the lowest June quarter average since 2020.
The report also highlights the continued evolution of Western Australia's electricity market, where more than 1 GW of additional grid-scale and 288 MWh residential battery capacity has entered the Wholesale Electricity Market (WEM) since Q2 2025, increasing battery participation across energy and essential system service markets while strengthening competition and system security.