Australian Energy & Environmental Market Update - February 2026

Australian Energy & Environmental Market Update - February 2026

Summary of key market developments

• Wholesale electricity prices edged higher month‑on‑month, as renewable generation eased from January’s levels while lower underlying demand lifted VRE penetration across the NEM.
• Price volatility remained evident but subdued, with two market price cap events occurring in early February reflecting the influence of weather conditions and supply availability on daily pricing outcomes.
• Futures continued to soften across much of thecurve, driven by the expectation of summer volatility failing to materialise.
• BESS performance remained mixed, with increasedinstalled maximum capacity supporting higher net revenue over recent months,while FCAS revenues continue to soften.
• Environmental markets delivered mixed outcomes,with softer LGC and STC pricing contrasting with stronger VEEC prices followingpolicy announcements and scheme‑specific developments.