Australian Energy & Environmental Market Update - July 2026

Australian Energy & Environmental Market Update - July 2026

Key market developments in July

• Wholesale electricity prices eased slightly in July despite higher NEM-wide demand as cooler weather continued.  
• Spot market volatility remained elevated in July. Negative price intervals became more frequent across the NEM, while high-price events occurred during periods of lower VRE output.  
• Baseload futures Cal27 prices strengthened across all states, while Cal28 and Cal29 contracts declined across most regions, with only QLD Cal28 edging higher.
• LGC spot fell to a mid-month low of $4.80/MWh before recovering to close at $7.10/MWh, supported by renewed buying interest.  
• STC prices remained stable despite fluctuations in certificate creation and the clearing house surplus.  
• VEEC prices rallied early before retreating to $83/tCO₂-e following the Victorian Government’s response to the Space Heating and Cooling Review.  
• ESC prices declined following the NSW scheme reforms before recovering to $29.00/MWh  as buying returned and certificate creation remained low.  
• PRC prices fell to $3.00/certificate after NSW reforms introduced additional battery creation pathways.
• In market news, the Federal Government announced an expansion of solar incentives for commercial installations and proposed renewable energy, firming and network requirements for new data centres