The Australian Energy Market Operator (AEMO) has revealed stunning figures showing renewables supplied more than half Australia’s energy supply for the first time, driving down wholesale electricity prices in the National Electricity Market (NEM).
AEMO’s latest Quarterly Energy Dynamics report shows wholesale electricity prices averaged $50/MWh across the NEM, a $39/MWh (-44%) reduction from Q4 2024 and a $37/MWh (-43%) decline from Q3 2025.
The quarter saw strong growth in renewable and storage output, with wind generation up 29%, grid-scale solar up 15%, and battery discharge nearly tripling to an average of 268MW, supported by 3,796MW of new battery capacity added since late 2024.
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At the same time, coal-fired generation fell to an all-time quarterly low, down 4.6% year-on-year, while gas-fired generation dropped 27% to its lowest level since Q4 2000.
AEMO executive general manager policy and corporate affairs Violette Mouchaileh said the quarter marked a significant milestone for Australia’s energy transition.
“This is a landmark moment for the NEM. For the first time, renewables and storage supplied more than half of the system’s energy needs for a full quarter,” Ms Mouchaileh said.
“It reflects years of sustained investment and demonstrates that more wind, solar and battery capacity in the system reduces reliance on higher cost coal and gas generation, placing sustained downward pressure on wholesale electricity prices,” she said.
Rooftop solar hit an all-time quarterly high of 4,407MW (+8.7%), reducing daytime operational demand and contributing to battery charging. New minimum operational demand records were set for the NEM (down 4% to 9,666MW), Victoria (1,287MW), Tasmania (678MW) and South Australia (-263MW).
Many of the trends seen in the NEM were also reflected in Western Australia’s Wholesale Electricity Market (WEM), with renewable and storage generation reaching new highs.
“Western Australia is experiencing the same momentum. Renewable and storage generation supplied a record 52.4% of energy needs this quarter,” Mouchaileh said.
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“Renewable output peaked at 91.1% late in the quarter, the highest on record, driven by strong rooftop solar and wind,” she said.
Increased renewable and battery generation contributed to a reduction in coal‑ and gas‑fired output, which fell 5.8% and 16.4%, respectively.
“Greater renewable and storage output continued to place downward pressure on wholesale energy prices in Western Australia, contributing to a 13% fall to $69.55/MWh,” Mouchaileh said.
