The Queensland Renewable Energy Council (QREC) has welcomed the Australian Energy Regulator’s (AER) final Default Market Offer (DMO) for 2026–27, saying projected savings for South-East Queensland households and small businesses highlight the importance of continuing to deliver renewable energy, storage and grid infrastructure projects across the state.
The AER’s final determination shows south-east Queensland flat-rate residential Default Market Offer prices will fall by 7.2 per cent, or $155 per household, from 1 July, while small businesses on flat-rate standing offers will see prices fall by 10.4 per cent, or $445.
For households with smart meters on time-of-use standing offers, south-east Queensland will see the largest reduction in the National Electricity Market, with prices falling by up to 10.7 per cent, or $229 per household. Small businesses on time-of-use standing offers will see prices fall by up to 14.0 per cent, or $601.
QREC Chief Executive Officer Katie-Anne Mulder said the result was welcome relief for households and businesses, and reinforced the role renewable energy and storage were playing in improving affordability outcomes.
Queenslanders have embraced rooftop solar, and Queensland also has the largest pipeline of committed and operating large-scale renewable energy projects in the National Electricity Market.”
“With low-cost renewable energy playing a central role in Queensland’s Energy Roadmap, continued investment with strong supporting policy settings will help keep Queensland at the forefront of affordable and reliable energy supply.
“The AER has pointed to easing wholesale energy costs, including lower contract prices, reduced spot price volatility and increased output from wind and battery generation during evening peaks.
“That is exactly the role renewable energy and storage are playing in Queensland’s electricity system — increasing supply, putting downward pressure on wholesale costs and helping shield households and businesses from volatile high-price events.”
Ms Mulder said the affordability benefits identified in the DMO depended on Queensland continuing to deliver the projects already assumed in market modelling.
“Today’s decision is good news for south-east Queensland households and small businesses, but these savings are not automatic. They rely on getting more generation and storage built, connected and operating,” she said.
“In ACIL Allen’s Reference Case, near-term projects are included where they are considered committed and expected to come online in the near-term future. Those assumptions matter because the Reference Case informs wholesale energy cost modelling, which is a key input into the Default Market Offer.
“In practical terms, when committed solar, wind, battery and pumped hydro projects are included in the modelling, they help shape forecasts of future supply, spot prices, volatility and hedging costs faced by retailers.
“That means Queenslanders only fully realise the affordability benefits forecast in the DMO if the projects assumed in the modelling are actually delivered.”
ACIL Allen’s 2025–26 report states that its Reference Case “incorporates changes to existing supply where companies have formally announced the changes” and that “near-term new entrants are included where the plants are deemed to be committed projects.”
The report identifies committed Queensland projects expected to come online in the near-term future, including Boulder Creek Wind Farm, Hopeland Solar Farm, Woolooga BESS, Aldoga Solar Farm, Brendale BESS, Broadsound BESS, Bundaberg Solar Farm, Gunsynd Solar Farm, Herries Range Wind Farm, Moah Creek Wind Farm, Supernode BESS, Swanbank BESS, Tarong West Wind Farm, Ulinda Park BESS and Western Downs Battery Stage 2.
Ms Mulder said the AER’s decision should sharpen the focus on planning, approvals, connection and community benefit frameworks.
“Queensland has a strong pipeline of renewable energy and storage projects, but a pipeline does not lower bills unless projects can move from planning to construction to connection,” she said.
“That means practical approvals reform, timely grid connections, social impact assessments, community benefit agreements with host councils, and clear rules that give regional communities confidence and investors certainty.”
A separate price determination process for regional Queensland households and businesses is being managed by the Queensland Competition Authority.