NEM spot prices surged 47.8 per cent week-on-week to average $67.81/MWh, as Australia’s largest transmission project, EnergyConnect, began full energisation. Transgrid confirmed the milestone for the interconnector linking South Australia, Victoria, and New South Wales. The project aims to lower power costs and improve reliability by enabling greater sharing of renewable generation across the NEM, a critical step as market volatility continues to challenge operators.
The regulatory framework underpinning network investment also saw movement. Jemena welcomed the Australian Energy Regulator’s final determination on its 2026-31 electricity distribution price review. The approved plan is designed to strengthen the Victorian distributor’s role in the energy transition while aiming to reduce network costs for customers. Meanwhile, the AER opened consultation on AusNet Services’ application to recover costs from the January 2026 Victorian bushfires, with submissions due by early July. This highlights the growing pressure on networks to fund climate resilience measures. A key source of new grid demand, data centres, are increasingly turning to behind-the-meter solutions to manage their operational needs. Operators are deploying battery energy storage systems as a 'Swiss Army knife' to handle volatile power spikes driven by artificial intelligence workloads. This strategy helps stabilise internal facility operations and reduces the technical strain these power-hungry sites place on the broader grid. The trend complements the utility-scale storage buildout, such as the 800 MW Red Gully battery approved in Western Australia yesterday. Electrification of transport continues to add to system demand, with charging infrastructure expanding to meet the growing fleet. Tesla opened its 1,000th Australian supercharger in Byron Bay, marking a significant milestone in public charging availability. The market for electric vehicles is also set to become more competitive. Chinese automaker Xpeng teased its second Australian model, a fast-charging people mover, signalling growing international interest in the local market. Looking ahead, regulators are progressing several key market procedure updates. AEMO is seeking feedback on its Carbon Dioxide Procedures and changes to the Negative Settlements Residue Procedure, with submissions for both closing on 30 June. Stakeholder input is also being sought on a major transmission capacity constraint RIT-T, with that consultation closing on 11 July.