NEM wholesale electricity prices surged 63.4 per cent week-on-week to average $124.46/MWh, as lower renewable output underscored the market’s sensitivity to generation mix and weather. The price spike, which saw renewable energy’s contribution dip to 26.1 per cent, provides a stark backdrop for major project developments aimed at firming the grid and expanding clean energy supply.
Two major projects highlighted this push, with the Victorian government granting environmental approval for what is set to become Australia’s largest wind farm. The state green-lit the 219-turbine project, which also includes two large-scale batteries, clearing a critical planning hurdle. Meanwhile, in New South Wales, ACEN Australia reported that its 720 MW New England Solar farm is experiencing less curtailment, boosting revenue despite softer wholesale prices. To further optimise its output and navigate price volatility, ACEN is commissioning a 200 MW / 400 MWh battery at the site, demonstrating the growing necessity of co-located storage for large-scale VRE assets.
On the demand side, the electric vehicle market is showing signs of both intense competition and supply chain strain. New Chinese brand GAC cut prices on its Aion V electric SUV and is offering a free home charger in a bid to capture market share ahead of the end of the financial year. This aggressive pricing strategy contrasts sharply with news from market leader BYD. The company’s founder revealed that massive demand for its new models, which feature rapid charging, has led to tight supply conditions for its signature Blade batteries. The divergence illustrates the dual pressures shaping the EV transition: aggressive market entry tactics alongside the physical constraints of scaling production.
Regulators continue to shape the market frameworks for this transition. Jemena welcomed the Australian Energy Regulator's final determination on its 2026-31 electricity distribution pricing plan, locking in network costs for its Victorian customers for the next five years. Looking ahead, the Australian Energy Market Operator is seeking industry feedback on proposed minor amendments to its Medium Term Projected Assessment of System Adequacy (MT PASA) process. Submissions on the discussion paper, which outlines changes to the key forecasting tool, are due by May 25.