This article summarises key insights from the AEMO Quarterly Energy Dynamics Q2 2025 report, covering April to June 2025. The quarter delivered a mix of record renewable generation, unusual demand patterns, and sharp winter price volatility. Highlighting just how quickly Australia’s energy market can shift when weather and generation conditions collide
Solar Power Keeps Daytime Demand Low
Average demand in the National Electricity Market (NEM) reached a new record of 24,118 MW, up 0.7% year-on-year, driven by population growth, more electric heating, EV uptake, and rising data centre needs. Rooftop solar, however, kept daytime demand in check; output jumped 15% to 2,358 MW.
Wind & Battery Records
Wind generation surged 31%, setting new highs for:
- Wind alone: 9,472 MW.
- Wind + solar combined: 12,516 MW.
Renewables supplied almost 38% of total NEM generation, cutting emissions by 5.9%. Batteries had their biggest quarter yet. Average discharge more than doubled to 162 MW, with a record 1,756 MW discharged on 12 June, helping to meet evening peak demand during tight supply conditions.
Winter Price Spike
Coal-fired generation continued to fall. Black coal down 7.4%, brown coal down 4.1%, but when cold, calm conditions hit in June, gas plants filled the gap. Victoria recorded its highest June gas generation since 2007, with gas demand for electricity setting a new winter record on 26 June.
Wholesale electricity prices averaged $140/MWh for the quarter (+5% year-on-year). June was the standout month, averaging $232/MWh. Three days (11, 12 and 26 June) were responsible for more than 85% of the quarter’s price volatility. On 12 June, the NEM saw its highest daily average price in history.
Gas Prices Down, Supply Up
Despite the winter price spikes, east coast wholesale gas averaged $12.36/GJ, down from $13.66 a year earlier. More supply came from Victoria’s Otway and Orbost plants, alongside increased Longford capacity. LNG exports dipped slightly due to maintenance, and the Iona Gas Storage facility ended the quarter 2.2 PJ higher than last year.
Big Battery Boom
Battery capacity continues to expand rapidly. Since Q2 2024, over 3 GW of new capacity has been added, with standalone battery projects now making up 44% of the NEM’s connection pipeline. These storage systems are playing a growing role in managing supply volatility and capturing price opportunities.
From autumn’s solar highs to winter’s price whiplash, Q2 2025 showed the evolving balance between renewables, storage, traditional generation and the crucial role weather still plays in Australia’s energy market.
Want to dive into the full details? You can read the complete AEMO Quarterly Energy Dynamics Q2 2025 report here