AEMO releases its Q1 2025 Quarterly Energy Dynamics Report
| The Australian Energy Market Operator (AEMO) recently released its Quarterly Energy Dynamics Report for Q1 2025, which tracks key drivers and changes in the National Electricity Market (NEM) across time. In Q1 2025, underlying electricity demand in the NEM hit a new record, averaging 25,162MW for the quarter, driven by hot weather in Victoria and South Australia. This was offset by record distributed solar photovoltaic (PV) output, which led to a 0.8% decrease in operational demand. Minimum operational demand records were also set in multiple regions. Wholesale electricity prices averaged $83/MWh, up 9% from Q1 2024 but down from Q4 2024. Tasmania saw the sharpest price increase due to more expensive hydro offers, while Queensland prices fell 24% amid reduced volatility. Renewable energy’s market share rose to 43%, supported by record highs in grid-scale solar, wind, and battery generation, while coal generation continued to decline. As a result, emissions and emissions intensity reached new Q1 lows. The quarter highlights the continued growth in renewables, shifting generation dynamics, and evolving regional demand patterns across Australia’s energy markets. |
Victorian Government body VicGrid releases the Victorian Transmission Plan
| In May 2025, the Victorian Government unveiled a comprehensive $4.3 billion transmission plan aimed at transforming the state’s energy infrastructure to support its ambitious renewable energy targets. Spearheaded by VicGrid, the plan outlines the development of seven Renewable Energy Zones (REZs) in regions such as Gippsland, Central Highlands, and the Wimmera, strategically selected for their high potential in wind and solar energy generation. These zones are expected to host over 8 gigawatts of new capacity, predominantly from wind power. To facilitate the integration of this renewable energy into the grid, the plan proposes the construction of four new transmission lines and the upgrade of existing infrastructure, totalling approximately 810 kilometers of powerlines. This infrastructure is crucial for achieving Victoria’s targets of 65% renewable electricity by 2030 and 95% by 2035. |
Labor party achieves emphatic win in 2025 Federal Election, cementing continued support for renewables and climate action
| In the wake of the 2025 federal election, the Australian Labor Party has solidified its mandate, positioning itself to advance more ambitious climate policies. While yet to update its emissions reduction goals beyond 2030, Labor faces calls to commit to a robust 2035 target and to enact “nature positive” environmental laws. Prime Minister Anthony Albanese has reiterated his commitment to establishing an Environmental Protection Agency that balances industry concerns with sustainability. The election outcome provides welcome stability and continuity for the renewable energy industry, bolstering expectations that the Labor government will build upon its first-term achievements enroute to its ambitious goal of 82% renewables by 2030. |
