The first three months of the year saw record energy demand matched by record renewables in Australia's energy grid, as batteries and solar helped push wholesale prices down.
The first quarter of 2026 showed the promise of Australia's energy transition delivering.
Households kept cool during a warm summer with AC powered by rooftop solar, while batteries stored more of that abundant sunshine for the evenings, displacing expensive gas and setting the price for cheaper wholesale costs across the grid.
The Australian Energy Market Operator's (AEMO) Quarterly Energy Dynamic shows across the National Electricity Market renewables reached a record for a first quarter, supplying 47% of the grid, as demand also rose to a quarterly record. Meanwhile, coal and gas generation fell as they were displaced by renewables and batteries.
The average wholesale price across the NEM fell 12% year-on-year in the quarter.
Minister for Climate Change and Energy Chris Bowen said it was a promising start to 2026, but the Government wouldn't stop in its efforts to shield Australians from global energy uncertainty.
"Our plan has two parts: More cheaper, cleaner energy and a better deal for households.
"We've got the best sun and wind in the world, and we're using our sovereign renewables to shield our grid from global energy volatility and to bring down your energy bills.
"We can also see the impact of Cheaper Home Battery revolution - with more than 350,000 household batteries now displacing gas in the evening with cheap solar, helping the grid for everyone.
"The Coalition's plan is to stop renewables and household batteries, sweat coal, and leave Australians to pick up the bill of global shocks.
"We know energy bills are still too high - because when coal breaks down, your bill goes up - but this quarter shows steady progress."
Key datapoints from AEMO's QED
Wholesale electricity prices were 12% lower year-on-year
- NEM average spot price: $73/MWh
Batteries are now a central part of NEM price setting, displacing expensive evening gas
- Battery charge and discharge together set prices in 32% of dispatch intervals, making batteries the most frequent price-setting technology across the NEM in Q1 2026.
Renewables reached new Q1 highs and displacing expensive gas and coal generation
- Total coal-fired generation fell to a new Q1 low of 13,102 MW, down 4.4% from Q1 2025, while gas-fired generation averaged 712 MW, down 24% year-on-year and the lowest quarterly average since Q4 1999.
- Grid-scale solar output reached a new quarterly record of 2,706 MW, up 13% from Q1 2025.
- Wind output reached a new Q1 high of 3,845 MW, up 9.3% from Q1 2025, driven by increased availability at new and commissioning facilities, particularly in Queensland.
- Renewable generation supplied 46.5% of NEM generation, a new Q1 high and up from 42.5% in Q1 2025.
- Rooftop solar is the largest renewable contributor, averaging 4,090 MW and accounting for 15.8% of total supply.
Underlying demand reached a new quarterly record, but more solar offset growth in grid demand
- Underlying NEM demand: 25,496 MW (record). Up 302 MW year-on-year. Operational NEM demand: 21,406 MW. Distributed PV averaged 4,090 MW (record).
