Australian Energy & Environmental Market Update - February 2026

The latest edition of our monthly Australian Energy & Environmental Market Update is now available. Keep reading for key developments across electricity and environmental markets, tracking price movements, underlying drivers and policy signals shaping market conditions.

Updated

March 13, 2026

Published

March 12, 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.

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Table of Contents

Australian Energy & Environmental Market Update - February 2026

Highlights

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Australian Energy & Environmental Market Update - March 2026

Market Update

Australian Energy & Environmental Market Update - March 2026

A monthly snapshot of key developments across electricity and environmental markets, tracking price movements, underlying drivers and policy. signals shaping market conditions.

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