The first quarter of 2026 saw record energy demand matched by record renewables in Australia’s energy grid, and a decline in wholesale electricity prices.
The Australian Energy Market Operator’s (AEMO) Quarterly Energy Dynamics report showed renewables reached a record across the National Electricity Market for the January to March quarter, a period where demand also reached a record high.
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Renewable generation supplied 46.5% of total NEM generation, a new Q1 high and up by 4% since Q1 2025.
Rooftop solar is the largest renewable contributor, averaging 4,090MW and accounting for 15.8% of total supply, whereas wind output reached a new Q1 high of 3,845MW in wind output, up 9.3% from Q1 2025, driven by increased availability at new and commissioning wind facilities.
Minister for Climate Change and Energy Chris Bowen says the figures are a promising start to 2026, but efforts must continue.
“Our plan has two parts: More cheaper, cleaner energy and a better deal for households,” Bowen says.
“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.”
Wholesale electricity prices across the NEM fell 12% year-on-year in the quarter, driven by reduced coal and gas generation.
Total coal-fired generation fell to a new Q1 low of 13,102MW, down 4.4% from Q1 2025, while gas-fired generation averaged 712MW, down 24% year-on-year and the lowest quarterly average since Q4 1999.
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“We can also see the impact of Cheaper Home Battery revolution—with more than 350,000 household batteries now displacing gas in the evening with cheap solar, helping the grid for everyone,” Bowen says.
“We know energy bills are still too high—because when coal breaks down, your bill goes up—but this quarter shows steady progress.”
