NEM spot prices rebounded 16.2 per cent week-on-week to average $48.88/MWh, a sharp reversal from last week's record lows. The recovery comes despite a continued high renewable energy share, which accounted for 49.6 per cent of generation. This price volatility underscores the NEM's shifting supply dynamics, where periods of extreme oversupply can quickly give way to tighter conditions. The market's behaviour provides a complex economic backdrop for network operators managing both immediate physical threats and long-term investment cycles.
On the physical grid, Endeavour Energy crews are continuing restoration efforts following damaging gale-force winds over the weekend. The distributor expected to have restored power to approximately 90 per cent of impacted customers by Sunday evening. The severe weather event highlights the increasing operational pressures on network service providers from climate-related disruptions. Maintaining grid resilience in the face of more frequent and intense weather is a growing focus for both operators and regulators.
Meanwhile, some regulatory certainty has emerged for network investment in Victoria. Jemena secured the Australian Energy Regulator's approval for its 2026-31 electricity distribution price review determination. The five-year plan aims to strengthen Jemena’s role in the energy transition while delivering reduced distribution costs for its customers. This approval locks in a crucial part of the investment framework needed to accommodate rising electrification and distributed energy resources across its Melbourne network.
That future demand profile is being shaped by an accelerating influx of new electric vehicle models. Chery's sub-brand Lepas was spotted testing its new L4 electric SUV in Sydney, one of two new models planned for an upcoming Australian launch. Simultaneously, popular EV maker Zeekr announced its 7X model will receive a larger, faster-charging battery. The update will push the entry-level variant's range beyond 530 kilometres. These new, higher-specification Chinese EVs signal a coming step-change in residential load, increasing the urgency for networks like Jemena to prepare for greater demand and faster charging speeds.
The forward regulatory agenda continues to address these evolving market and network needs. AEMO is currently seeking feedback on proposed changes to cash security requirements for NEM registration. It is also consulting on a draft assessment for network support in Melbourne's south-eastern growth corridor. These processes will refine the rules governing market participation and grid investment as the transition gathers pace.