The Queensland Renewable Energy Council (QREC) has welcomed the latest report from the Australian Energy Market Operator (AEMO), confirming that increased renewable energy generation and battery storage are placing downward pressure on electricity prices in Queensland.
QREC Chief Executive Officer Katie-Anne Mulder said the findings reinforce what industry, regulators and market bodies have consistently identified — that renewable energy is central to delivering more affordable electricity for households and businesses.
“Today’s AEMO data is clear — more renewable energy and storage in the system are helping to drive down electricity prices in Queensland,” Ms Mulder said.
AEMO’s Quarterly Energy Dynamics (QED) – Q1 2026 report highlights a significant reduction in wholesale electricity prices in Queensland, driven in large part by the growing contribution of renewable energy and battery storage. The report found:
“Queensland recorded the largest year-on-year reduction in wholesale spot prices, averaging $65/MWh in Q1 2026, down $24/MWh (-27%). Increased renewable output and higher battery discharge at peak periods, alongside mild weather conditions and relatively moderate changes in demand year-on-year, resulted in $11/MWh (-88%) reduction in the cap return component and $13/MWh (-17%) lower energy prices.”
Importantly, this outcome aligns with recent draft determinations by both the Australian Energy Regulator (AER) and the Queensland Competition Authority (QCA), which have identified increased renewable generation as a key driver of lower electricity prices for Queensland homes and businesses.
“The AEMO report provides further evidence that Queensland’s energy transformation is delivering tangible benefits,” Ms Mulder said.
“This builds on the findings of the AER and QCA draft determinations, which also point to renewables as a key contributor to lower power prices for consumers.”
“Queensland is seeing the benefits of increased renewable generation and battery storage, particularly during peak periods when prices have historically been highest.”
AEMO’s report also highlights strong growth in renewable generation, with grid-scale solar output reaching a new quarterly high and wind generation also increasing, supported by new and commissioning projects — particularly in Queensland. QREC noted that AEMO’s findings highlight the critical role of timely project delivery, with continued price reductions dependent on bringing new renewable and storage capacity online as forecast.
“Maintaining this downward trajectory in electricity prices depends on ensuring projects are delivered on time and that planning and approvals processes remain efficient and streamlined,” Ms Mulder said.
“Queensland’s Energy Roadmap is designed to deliver more energy into the system, and the private sector stands ready to continue investing in new renewable and storage projects that will keep putting downward pressure on prices.”
Across the National Electricity Market, the renewable share of generation reached a new first quarter high of 46.5 per cent, up from 42.5 per cent a year earlier. Total emissions also fell by almost 5 per cent over the same period.
The growing role of battery storage is also helping to reduce price volatility and support lower costs for consumers. A rapid expansion of grid-scale batteries is enabling excess solar and wind generation to be stored during the day and dispatched during the evening peak — a period traditionally associated with the highest electricity prices. This is improving the overall supply-demand balance, reducing reliance on higher-cost generation, and placing further downward pressure on prices.
QREC reiterated its commitment to working with governments, regulators and communities to support the continued rollout of renewable energy projects that deliver affordability, reliability and long-term energy security for Queensland.