Electricity Demand Continues to Evolve

• Underlying NEM electricity demand remained stable, increasing by 0.2% year-on-year to an average of 24,220 MW.
• Continued growth in distributed solar generation (+6.9%) reduced operational demand by 0.5% despite steady underlying consumption.
• Demand profiles continued to shift, with stronger daytime consumption driven by battery charging, industrial activity and expanding data centre loads.
• Reduced evening demand reflected increased household battery discharge and milder winter conditions lowering heating requirements.
• Consumer energy resources continue to reshape load profiles, reducing traditional evening peaks.
• Underlying demand is the total electricity consumed by all users, while operational demand is the portion of that total met by the main power grid. Operational demand subtracts out local rooftop solar and small embedded generators because those systems reduce how much power needs to come from the main grid.

Renewable Generation Reached New Q2 Highs

• Renewable energy supplied a record 42.1% of NEM generation, up from 37.1% in Q2 2025.
• Wind generation reached a new Q2 record, increasing 20% year-on-year, supported by new capacity and improved wind conditions.
• Queensland recorded the strongest growth, with wind output rising 80% to a new all-time high.
• Grid-scale solar generation increased 12%, with new projects offsetting lower solar irradiance across southern regions.
• Coal-fired generation declined to its lowest Q2 level on record, while gas-fired generation fell to its lowest Q2 average since 2003.
• The cleaner generation mix reduced total NEM emissions by 6.4% and emissions intensity by 6.0%.

Battery Storage Continues to Transform Market Operations

• Grid-scale battery capacity continued to expand, significantly increasing energy shifting between daytime solar generation and evening demand.
• Daytime battery charging increased 211%, while evening discharge increased 228% compared with Q2 2025.
• Batteries increasingly influenced wholesale market outcomes, setting prices in 36% of dispatch intervals, up from 17% a year earlier.
• The greatest increase in battery price-setting influence occurred in New South Wales and Queensland.
• Battery storage is increasingly reducing peak pricing pressure while supporting greater renewable integration.

Wholesale Electricity Prices Declined Across the NEM

• Average NEM wholesale electricity prices fell to $74/MWh, down 47% year-on-year and the lowest Q2 average since 2020.
• Increased renewable generation, higher battery discharge and reduced evening peak demand collectively lowered wholesale prices.
• Victoria recorded the lowest regional average price at $56/MWh, followed by Queensland ($67/MWh), New South Wales ($75/MWh) and Tasmania ($86/MWh).
• South Australia remained the only region to experience material price volatility, driven by low wind conditions, higher demand and transmission constraints during late June.
• Overall, wholesale price volatility was substantially lower than the previous year.

East Coast Gas Market Softened Despite Global Supply Risks

• East coast wholesale gas prices averaged $9.08/GJ, the lowest quarterly average since Q2 2021.
• Domestic gas demand declined 3%, driven by reduced gas-fired generation and lower commercial, industrial and residential consumption.
• Above-average temperatures further reduced winter heating demand, particularly across Victoria.
• Queensland LNG exports reached a new Q2 record despite softer domestic demand.
• International LNG prices remained materially higher than domestic prices due to ongoing geopolitical supply risks in the Middle East.
• Iona Underground Gas Storage remained near full capacity for most of the quarter, highlighting comfortable domestic supply conditions.

Western Australia Experienced Tighter Electricity Market Conditions

• Underlying demand in the Wholesale Electricity Market (WEM) increased as cooler weather lifted heating requirements.
• Lower wind generation and reduced coal availability increased reliance on gas-fired generation.
• Renewable generation’s share of the WEM declined from 33.6% to 32.0%.
• Average WEM energy prices increased 30% year-on-year to a record $117.87/MWh.
• Higher energy costs were primarily driven by reduced renewable and coal generation combined with increased gas generation.
• Despite higher energy prices, battery participation significantly reduced Essential System Services (ESS) costs through increased competition.

Western Australian Gas Market Remained Well Supplied Despite Lower Activity

• Domestic gas consumption and production both declined 8.5% year-on-year.
• Lower industrial demand contributed to softer overall gas consumption.
• Storage withdrawals remained relatively modest compared with the previous year.
• Pipeline maintenance and cyclone recovery works created intermittent operational constraints across the Dampier to Bunbury Natural Gas Pipeline.
• Despite these operational challenges, domestic gas supply remained adequate throughout the quarter.

If you’d like to discuss your energy contract with one of our experts, simply get in touch via our website.

The post Key takeaways from AEMO’s Quarterly Energy Dynamics – Q2 2026 appeared first on Sustainable Energy Solutions Pty Ltd.

This partnership strengthens our ability to provide deeper expertise, expanded capabilities and a stronger national presence, while continuing to deliver the personalised service and trusted relationships our customers value.

We’re excited for this next chapter and what it means for our customers, partners and team.

The post Sustainable Energy Solutions (SES) has officially joined the Zembl Group appeared first on Sustainable Energy Solutions Pty Ltd.

While these changes often receive less attention than wholesale energy prices, they can have a material impact on total electricity costs for commercial and industrial energy users.

Network charges typically account for 30–50% of a commercial or industrial electricity bill. However, they are separate from retail electricity contracts and are not influenced by negotiated energy rates. Instead, they are set by local distribution networks such as Ausgrid, Energex, Endeavour Energy, CitiPower, Jemena and approved annually by the Australian Energy Regulator (AER). These costs are then passed through to end users regardless of their retail energy agreement.

From 1 July 2026, network costs will change again across all major distribution networks, with the magnitude of those changes varying considerably by jurisdiction, tariff class, and demand profile.

For energy-intensive businesses, this presents an opportunity to reassess whether they are still on the most optimal network tariff. In some cases, a tariff review can identify a meaningful cost savings.

Below is a summary of the approved network changes for large energy users from 1 July 2026:

Figures represent the approved average all-business network cost change for FY27. Actual impact varies by tariff class.

The ACT, Queensland’s south-east, and the Northern Territory face the steepest increases — all above 11%. Large businesses across NSW are looking at rises between roughly 7% and 13%. Victorian customers have a more mixed picture, with some networks actually reducing costs.

How Much Will This Impact Your Business?

Network charges typically account for 30–50% of a commercial or industrial electricity bill. An increase of 10% on the network component doesn’t look dramatic at first glance, but a constant increase almost every year can eventually become significant.

That cost lands on 1 July whether you’re ready for it or not. The question is whether you’re on the right tariff to avoid overpaying on your Network Costs.

Your electricity bill will show your network charges and in some cases your network tariff code. Check out our ‘Your electricity bill explained’ FAQs or get in touch with our energy experts if you’re unsure.

Your Business’s Network Tariff Might Have Changed

Here’s what many large energy users don’t know: the network tariff your site is assigned to isn’t fixed. It can be reviewed, and if your load profile, operational pattern, or on-site generation has changed since it was last assessed, you may be paying for a tariff structure that no longer fits.

This is what a Network Tariff Review (NTR) tests. It identifies whether a site is allocated to the correct and most beneficial tariff, or not.

The Commercial Case Is Well Established

The financial case for reviewing network tariff assignments is clearly documented. Industry data shows a meaningful proportion of large commercial and industrial sites would benefit from a tariff reclassification, with average savings running to several thousand dollars per site per year. At the portfolio level, across multi-site operations, the aggregate impact can be material.

For businesses that have made changes in recent years — added solar, shifted operating hours, upgraded equipment, changed production patterns — there is a possibility that your current tariff could be reviewed for an alternative and optimal tariff.

What You Should Do

If your business hasn’t had a formal Network Tariff Review in recent years, Sustainable Energy Solutions might be able to assist with one. If you want to understand what the FY27 changes mean for your specific sites, get in touch with our team.

The post Network Tariffs Are Rising — Here’s What Businesses Need to Know appeared first on Sustainable Energy Solutions Pty Ltd.

Underlying electricity demand reached a new quarterly high, supported by electrification, population growth, and data centre expansion, though this was largely offset by record rooftop solar output. At the same time, batteries are increasingly influencing price outcomes, softening evening peaks while lifting daytime pricing, and fundamentally changing how the market behaves.

Gas prices have also declined despite global volatility, reflecting lower domestic demand and reduced reliance on gas-fired generation. However, this dynamic may not persist, particularly as the market approaches winter and global conditions continue to evolve.

As the market becomes more complex, with lower average prices but ongoing volatility and structural change, it remains important to stay close to both electricity and gas developments. Read on for all the key points from AEMO’s latest QED report.

Demand Growth Offset by Rooftop Solar

• Underlying electricity demand reached a new quarterly record (+1.2% YoY), driven by heat events, electrification, population growth, and data centres.
• However, record rooftop solar output (+8.1%) offset this growth, keeping grid demand broadly flat.

Renewables Rising, Thermal Generation Falling

• Renewables reached 46.5% of total generation (new Q1 record).
• Coal generation declined (-4.4%), while gas generation fell to its lowest level since 1999.

Batteries Are Now Influencing Prices

• Battery capacity has more than doubled year-on-year, significantly reshaping supply patterns.
• Batteries are now setting prices in ~32% of intervals, overtaking hydro.
• Evening peak prices softened, while daytime prices lifted due to charging behaviour.

Electricity Prices Lower Overall, But Volatility Remains

• Average wholesale prices fell to $73/MWh (-12% YoY).
• However, prices remain elevated vs last quarter (+47%) and volatile during extreme events (e.g. South Australia January spike). 

Gas Prices Fall Despite Global Tension

• East coast gas prices averaged $10.61/GJ (down from $13.26/GJ YoY).
• This occurred despite higher global LNG prices and geopolitical disruption.
• Lower demand (especially from gas generation) was a key driver.

WA Prices Stable, Gas Market Tightening, and Renewables Driving Transition

• WA wholesale energy prices remained relatively flat (~$88/MWh) with lower volatility due to battery activity.
• Domestic gas consumption and production both declined (~4-5%), with storage and pipeline constraints flagged late in the quarter.
• Underlying demand declined (-2.3% YoY) due to milder weather, while rooftop solar output increased (+6.5%), further reducing daytime grid demand.
• Renewable share increased to 46.1%, while battery discharge surged (+305%) following significant new capacity additions.

Market Outlook & Bottom Line

• Demand pressures are building, particularly from electrification and data centres
• Renewables and batteries are reshaping price dynamics, not eliminating volatility
• Gas remains a key swing factor, with downside risk to prices if global conditions flow through
• Price outcomes will increasingly depend on timing, load profile, and flexibility

With Iona gas storage on track for full capacity ahead of winter and battery capacity continuing to grow, conditions entering Q2 appear more balanced than a year ago. However, winter demand uplift, continued gas export competition from LNG markets, and ongoing South Australian grid constraints remain key risks to watch. The accelerating shift of price-setting to batteries will continue to structurally alter intraday price profiles, relevant for customers with flexible load or on time-of-use contracts. For large energy users, this reinforces the need for active procurement strategies and ongoing market engagement rather than passive contract management.

If you’d like to discuss your energy contract with one of our experts, simply reply to this email or get in touch via our website.

The post Key takeaways from AEMO’s Quarterly Energy Dynamics – Q1 2026 appeared first on Sustainable Energy Solutions Pty Ltd.

One question that often arises is whether engaging multiple energy brokers or consultants leads to better results. While this approach may appear to introduce competition, there are several factors that are worth carefully considering.

Key Considerations and Risks of Using Multiple Energy Brokers

In practice, involving multiple brokers in a large-market procurement process can introduce complexity that may outweigh the perceived benefits.

1. Retailer engagement and pricing outcomes
   Large-market retailers operate within a relatively small and concentrated pool. When multiple brokers approach the same retailers for the same portfolio, it can create confusion around authority and process. In some cases, this may lead to more conservative pricing, reduced engagement, or withdrawal from the opportunity altogether.
2. Market fatigue and timing challenges
   Repeated or overlapping approaches to market can reduce the effectiveness of a procurement process. Retailers may be less inclined to provide their most competitive pricing if they perceive uncertainty or duplication in how an opportunity is being managed.
3. Inconsistent assumptions and comparability
   Different brokers may apply varying assumptions around load forecasts, contract structures, start dates or risk positions. This can make it difficult to assess offers on a true like-for-like basis, increasing the risk that decisions are made on incomplete or misaligned information.
4. Governance and accountability
   With multiple advisors involved, accountability can become less clear. This may create challenges in coordinating tender processes, managing timelines, and ensuring that outcomes align with the broader energy strategy.
5. Contracting risk
   In more complex scenarios, overlapping authorities or unclear communication pathways can introduce the risk of duplicated tenders or unintended contracting outcomes, particularly around renewal periods.

Market Reality for Large Energy Users

For large-market electricity accounts, it is important to recognise that the pool of retailers and wholesale counterparties is relatively concentrated, and most brokers are engaging with the same market participants.

Where differentiation can occur is in the strategy and approach taken to procurement. An experienced broker or consultant may offer alternative structures beyond traditional fixed-price contracting, such as progressive purchasing. These approaches can provide greater control over timing, risk exposure and market participation.

For larger energy users seeking a more comprehensive view of available options, understanding these different procurement strategies can be as important as the pricing itself. Ensuring that these approaches are clearly presented and well understood can support more informed and aligned decision-making.

Where Multiple Energy Brokers May Add Value

That said, there can be value in exploring different perspectives earlier in the decision-making process.

Engaging with more than one advisor when assessing strategy, capability or approach can help challenge internal assumptions, provide alternative views on risk management, or support a more informed selection of a long-term advisory partner.

However, once a procurement process is underway, a more coordinated approach is often considered beneficial.

A Structured Approach to Energy Procurement

For many large energy users, a common approach is to appoint a single broker or advisor to manage a defined and transparent market process.

This can help:

• Maintain clear accountability
• Ensure consistent data and assumptions
• Present a unified and credible position to the market
• Align procurement timing with wholesale market conditions

Ultimately, this structure can support more consistent and reliable commercial outcomes, while reducing operational and contractual risk.

Key Takeaway

There is no single model that suits every business, and procurement strategies should reflect individual risk appetite, internal governance and market objectives.

However, when considering the use of multiple brokers, it is important to weigh not just the potential for increased competition, but also the practical implications for market engagement, pricing outcomes and process integrity.

In many cases, taking the time to select the right advisory partner upfront, and then running a structured, coordinated process, may provide a more effective pathway to achieving strong, risk-adjusted outcomes.

Our consultants provide independent assessments and connect you with trusted suppliers to secure compliant, cost-effective energy projects and savings. For the latest information or to speak to an expert at Sustainable Energy Solutions for a tailored conversation on your business’s needs and goals, please get in touch or call us on (02) 8044 0335.

The post Pros and Cons of Using Multiple Energy Brokers? appeared first on Sustainable Energy Solutions Pty Ltd.

That was the theme of our recent webinar on commercial batteries, and why more businesses are starting to look at them not just as a sustainability project, but as an investment.

Here are five takeaways.

1. Volatility is the new normal

Electricity prices in the National Electricity Market are moving around more than they used to. Solar generation can push daytime prices extremely low — sometimes even negative — while supply constraints later in the day can cause sharp spikes.

For most businesses on retail contracts this volatility is hidden behind fixed pricing, but it still exists in the underlying market.

And it’s that volatility that batteries are designed to capture.

2. Futures markets smooth things out

Most commercial electricity contracts are priced off the futures market, where retailers hedge expected wholesale prices years in advance.

That provides stability for customers, but it also means the real-time drama of the spot market is largely invisible.

Meanwhile traders and grid-scale batteries are increasingly profiting from those short bursts of price volatility.

3. Batteries are becoming part of the grid

Large batteries are now appearing across the grid as coal generators retire and renewable generation expands.

Their role is simple: store excess energy when supply is high and release it when supply tightens.

But that same concept can increasingly work at a commercial scale, particularly for large energy users.

4. The revenue model is expanding

Commercial batteries are no longer limited to simply reducing peak demand charges.

They can participate in multiple revenue streams including wholesale energy arbitrage, grid support services and demand response programs.

Stacking these revenue sources is what is starting to make the economics work.

5. Costs are falling

The final piece of the puzzle is cost.

Battery prices have been falling steadily for years, while electricity market volatility has been increasing.

That combination is improving the potential return on investment for many commercial sites.

The question for most businesses isn’t whether batteries will play a role in the future energy system.

It’s whether the timing now makes sense for their particular site.

Interested in exploring the opportunity?

Our consultants provide independent assessments and connect you with trusted suppliers to secure compliant, cost-effective energy projects and savings. For the latest information or to speak to an expert at Sustainable Energy Solutions for a tailored conversation on your business’s needs and goals, please get in touch or call us on (02) 8044 0335.

The post Five Key Lessons From Our Commercial Batteries Webinar appeared first on Sustainable Energy Solutions Pty Ltd.