Renewables and Batteries Push Australian Gas to 25-Year Low

The Australian Energy Market Operator (AEMO) reported that renewables accounted for a record 44.3% of generation on the National Electricity Market during the July-September quarter. While total electricity demand rose by 1.3%—driven by industrial expansion and the growth of data centers—the infrastructure mix underwent a radical transformation. Grid-scale solar generation climbed 30%, while hydropower output increased by 15%.

Battery technology proved the most disruptive force. Grid-scale battery capacity tripled year-over-year, allowing these systems to supply 8% of power during the critical 4 p.m. to 9 p.m. peak, compared to just 5.1% from gas. According to AEMO Executive General Manager Violette Mouchaileh, batteries now set prices in nearly half of all dispatch intervals, a sharp increase from 18% a year ago. This volatility management contributed to a 27% year-on-year drop in wholesale electricity prices, which averaged $63 per megawatt-hour.