NEM spot prices surged 34.5 per cent week-on-week to average $56.13/MWh, reversing last week’s declines and underscoring persistent market volatility. The price pressure coincides with a day of immense project ambition, as developers unveiled plans for what could become Australia’s largest energy storage projects, even as political and physical grid constraints mount.
The scale of the development pipeline was thrown into sharp relief as plans were lodged for the 1,200 MW / 4,800 MWh Goulburn South Battery in New South Wales. The project, now seeking state and federal planning approvals, would be the nation's largest battery if built. It was joined by a separate federal referral from EDF Power Solutions for the 300-400 MW Wala Wala Pumped Hydro project, also in NSW. This influx of storage capacity aligns with WattClarity analysis suggesting the 19 GW and 55 GWh of batteries in the pipeline could displace up to 6 GW of coal generation from the evening peak.
This eastern state ambition contrasts sharply with the reality in Western Australia. Fossil fuels generated 69.7 per cent of power on the SWIS during winter 2026, with a 10.7 per cent surge in gas generation more than offsetting a decline in coal use. A 19.2 per cent drop in wind output contributed to the rising emissions intensity, highlighting that the transition’s progress is not nationally uniform and remains vulnerable to resource variability and thermal fuel dependence.
Meanwhile, policy headwinds are gathering around key transition drivers. Policy groups told a federal inquiry that data centres require dedicated planning rules and environmental monitoring to manage their significant energy and water demands. The call for greater strategic oversight comes as the Smart Energy Council advocated for a new constraint on legacy assets. The council proposed a carbon price for coal generators that remain open beyond their stated closure dates, aiming to penalise lifespan extensions.
State-level politics are also intensifying. In Queensland, the government has been accused of pursuing a deliberate strategy to make large-scale renewables uninvestable by scrapping targets and supporting coal. This political uncertainty adds another layer of risk for project developers. At the project level, developers are also navigating complex environmental approvals, with a 350 MW Victorian wind farm seeking to use fewer, taller turbines to reduce risks to threatened bat species.
In the commercial sector, competition is forcing market participants to refine their strategies. Energy trader Evergen landed its first utility-scale contract to manage dispatch for the 5 MW Cecil Park battery in NSW. The move signals a maturing market where sophisticated optimisation is becoming critical. Similarly, Vena Energy appointed OptiGrid to deliver trading optimisation services for its 408 MW Bellambi Heights BESS in Queensland, seeking to maximise revenue in an increasingly saturated market.
Regulators are also focused on market frameworks and consumer protection. The AEMC finalised a rule requiring energy retailers to proactively help vulnerable customers access concessions and rebates. The determination shifts the onus from consumers to retailers, aiming to ensure financial support reaches those who need it. Looking ahead, AEMO is seeking feedback on proposed changes to cash security requirements for NEM registration, with submissions closing on 18 September.