Australian Energy & Environmental Market Update - May 2026
Australian Energy & Environmental Market Update - May 2026
A monthly snapshot of key developments across electricity and environmental markets, tracking price movements, underlying drivers and policy signals shaping market conditions.
Updated
June 11, 2026
Published
June 11, 2026
Australian Energy & Environmental Market Update - May 2026
Key market developments in May
Wholesale electricity prices rebounded slightly from April, with stronger month-on-month spot outcomes driven by a 6% increase in demand as seasonal winter load began to emerge.
Spot outcomes remained subdued overall, with fewer negative and extreme price events across the NEM than recorded in April.
Electricity baseload (flat) futures prices softened across all NEM regions except VIC, potentially influenced by higher VIC spot outcomes.
VRE penetration increased by ~0.1 percentage points MoM across the NEM, reaching 44.42%.
Environmental markets delivered mixed outcomes: LGCs experienced a modest recovery now sitting at $2.50 per certificate; VEECs firmed through the month before a slight pullback; ESCs outperformed, breaking above $28 on strong demand and low creation; STCs edged higher and PRCs were flat on thin liquidity.
In market news, CIS Tender 7 awarded 19 projects totalling 7.8 GW of renewable generation, above its 5 GW target.
Want to access more articles like this?
Log in or register a free CORE Markets account to get closer to power, environmental and carbon markets with insights and updates from our experts.
Oops! Something went wrong while submitting the form.
You Might Also Like
Market Update
Australian Energy & Environmental Market Update - May 2026
A monthly snapshot of key developments across electricity and environmental markets, tracking price movements, underlying drivers and policy signals shaping market conditions.
Australian Energy & Environmental Market Update - May 2026
A monthly snapshot of key developments across electricity and environmental markets, tracking price movements, underlying drivers and policy signals shaping market conditions.
This update is published monthly and provides analysis of key developments in select compliance and voluntary carbon markets as well as emerging environmental markets.
