The AER’s wholesale markets quarterly report analyses trends in the electricity and gas wholesale markets, focusing on the most recent quarter and alerting participants and stakeholders to issues of concern.
Our quarterly reports focus on wholesale energy prices and their drivers, including demand, generation, offers, contracts, market outlook and new entry and exit.
Insights – April to June 2025
High price events played a significant role in increased wholesale electricity prices this quarter, with most events occurring in June. Batteries played an increasing role in setting the price, particularly in the evening peaks. Higher intermittent renewable generation, primarily from wind and large-scale solar, displaced coal and gas generation.
Gas prices varied significantly over the quarter as lower than usual demand in May weighed on prices before they picked up again in June alongside colder weather, coal outages and higher GPG demand. Overall, prices were sitting lower than a year ago across all domestic spot markets. Although Longford experienced some production issues early in the quarter, there was adequate supply which was highlighted by higher storage levels than usual at Iona (Victoria’s largest gas storage facility) going into winter and drawdowns increasing only in June.