Story perspectives

Australia’s Electricity $70, Solar Outpaces Coal, Renewables 20%

5/13/2026

Summary

Story summary

Electricity prices stayed around AUD$70 per MWh in the first two quarters of 2026, below the 2022 peak above AUD$250.
Renewable generation and batteries now set 20% of price-setting, while gas’s share fell to under 5%.
Over 4.3 million rooftop solar systems give capacity that exceeds coal-fired plant output.
Australian Energy Market Operator projects datacentre electricity use to triple by 2030, prompting ministers to seek a July advisory on renewable offset.

History

Historical Context

After the September 2016 storm-driven blackout that left about 850,000 South Australians without power, a February 8 2017 outage affecting 90,000 households highlighted market-response flaws. Premier Jay Weatherill and AEMO responded by committing AUD 1.2 billion to battery storage, prompting Tesla’s 100-MW Hornsdale Powerpack and reinforcing the national electricity market’s interconnectors.

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Story summary

Electricity prices stayed around AUD$70 per MWh in the first two quarters of 2026, below the 2022 peak above AUD$250.
Renewable generation and batteries now set 20% of price-setting, while gas’s share fell to under 5%.
Over 4.3 million rooftop solar systems give capacity that exceeds coal-fired plant output.
Australian Energy Market Operator projects datacentre electricity use to triple by 2030, prompting ministers to seek a July advisory on renewable offset.

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