Australian Energy & Environmental Market Update - September 2026

Australian Energy & Environmental Market Update - September 2026

Key market developments in September

• Wholesale electricity prices softened in September, as operational demand fell and renewable generation increased.  
• Variable renewable energy generation rose 16% month-on-month, mainly supported by stronger solar output.  
• Baseload futures contracts strengthened across all regions and vintages during September.  
• LGC spot prices were volatile in September, with sentiment shifting throughout the month before prices eased into month-end.
• STC prices remained largely stable throughout September while VEEC prices strengthened early in the month before easing into month-end.
• ESC prices trended higher through most of September before moderating later in the month as registrations increased.
• PRC prices remained broadly flat throughout September amid subdued trading activity, with market attention centred on future compliance demand and scheme settings.
• Data centre energy policy remained a key focus, with the Federal Government consulting on proposed national standards for data centres and Victoria releasing its Sustainable Data Centre Action Plan. Separately, two BESS projects reached key financing and offtake milestones during September.