Spring brings windy conditions and low prices
Electricity prices across the National Electricity Market (NEM) fell sharply from August to September, with all mainland states (Queensland, New South Wales, Victoria and South Australia) recording declines between 30-40%, and Tasmania experiencing a dramatic 77% drop (driven largely by stronger hydro output, thanks to wetter conditions). The spring shoulder season brought warmer weather, lower demand, sunnier skies, and strong winds, combining to drive average prices lower and increase the occurrence of negative prices.
Negative spot prices occurred frequently across the NEM, particularly during solar hours and deeper during windy periods and on weekends. Prices were negative 27% of the time in New South Wales, 34% in Queensland, 35% in Victoria, and 39% in South Australia.
Peak demand declined across all states, with New South Wales recording the steepest fall – 20% lower than August levels. With a lack of significant peak demand, there were very few intervals of high prices. These subdued conditions are expected to continue through October, although rising temperatures later in spring could increase demand and shift price dynamics.
Renewables overtake coal for the first time
The spring shoulder season is when new renewable records are set, and 2025 is no exception.
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