December 2025

As we close out 2025, it’s clear Australia’s energy market continues to transform at pace. The rise of renewables is reshaping supply, and volatility remains a defining feature of the National Electricity Market.

Spot prices have stabilised compared to the shocks of 2022, averaging just over $86.70/MWh in QLD, $104.80/MWh in NSW, and $81.30/MWh year to date in VIC - but extremes persist, driven by weather and generation mix.

For the first time, renewable generation (49%) edged ahead of coal (48%) across the NEM in September. This shift underscores the importance of our innovative products to help you manage risk and capture value.

This year has also highlighted the value of our collaboration with you, our broker community. Your insights, shared through the end of year forums, workshops, and suggestions for MyAccount, have helped us deliver better energy solutions.

Thank you for partnering with us through this dynamic year. We look forward to supporting your business in 2026 with the energy insights and solutions to simplify and enhance your energy management.

Jennifer Tarr, General Manager Retail and Technology, Stanwell Energy Solutions

Industry news and insights

Renewables surge: What it means for Australia’s energy network

It’s no secret that Australia’s energy sector continues to experience significant growth in renewables and more recently, in battery storage projects, largely driven by market-based investment, technology advancements, cost reductions and policy settings.

At our End of Year industry breakfasts, Richard Jeffery, Stanwell Corporation’s Executive General Manager for Strategic Partnerships shared insights into how this shift is reshaping the energy network and considered the challenges and opportunities it may present for the network and its business energy users.

• Bulk energy growth: Renewables are delivering increased volumes of bulk energy, however given the variable nature of this energy (being dependent on weather), it cannot alone provide a reliable substitute for the incumbent coal fleet, requiring significant volumes of firming assets including gas and batteries.

• Battery storage expansion: Proposals for battery energy storage systems (BESS) are surging, driven by declining costs. According to AEMO’s recently released draft Integrated System Plan, new storage capacity in the connections pipeline has increased from 3GW in 2022 to 26 GW in 2025, with much more to come. There’s also a trend towards longer-duration batteries (4+ hours) which will help to reshape intermittent renewable energy to the time periods required. Recent federal incentives also mean increasing residential battery installations, coupled with rooftop solar.

• Grid connection challenges: Not all proposed projects will achieve grid connection, with technical and economic curtailment rates rising. Strengthening of grids is especially needed around major hubs like Gladstone.

• Cost dynamics: Transmission, wind turbine, and civil costs are increasing, while equipment costs for batteries have dropped 30–40% in the past year. Hybrid solar-battery projects and DC coupling have the potential to drive further cost reductions.

• Market volatility: Weather-dependent generation is making the energy system more volatile. It is not just demand that drives price, but many other dynamics including weather variability, grid constraints and other supply factors.

• Planning and community: Increased community concerns have driven changes to planning laws in Queensland. These now apply to wind, solar and battery projects, and will ensure that communities are taken on the journey when new projects are proposed. Amendments to federal environmental laws have also been proposed.

For business energy buyers, these changes increase supply flexibility and underscore the need to track retail product developments as market dynamics and risks shift.

Looking to the road ahead - Queensland’s Energy Roadmap

The Queensland Government’s Energy Roadmap has set a new direction for the state’s energy sector with a focus on coal-fired generation, gas, smaller pumped hydro facilities and renewable energy and batteries to provide and firm bulk energy supply.

The roadmap moves away from fixed closure dates for coal and renewable energy targets, focusing instead on affordability, reliability and sustainability.

Under the plan, coal-fired power stations will remain operational as long as needed, supported by the Electricity Maintenance Guarantee. Government support will be directed towards smaller pumped hydros and gas projects, accompanied by a strong focus on facilitation of private sector investment in renewables, batteries and hybrid projects.

Investment at a glance:

• $1.6 billion for the Electricity Maintenance Guarantee to maintain and upgrade state-owned generation assets.

• $400 million for the Queensland Energy Investment Fund, managed by QIC, to attract private investment in renewables, firming, and transmission projects.

• Additional funding to support for major transmission projects (including Gladstone Grid strengthening), pumped hydro and new gas generation capacity.

What the roadmap means for you

For business customers, the roadmap aims to provide greater certainty around supply and pricing. The roadmap’s support for coal-fired generation, pumped hydro projects and gas is designed to improve reliability and affordability, especially during peak demand periods. Transmission upgrades, such as the Gladstone and CopperString projects, will connect new renewable generation to the grid, supporting regional industries and enabling growth.

For Stanwell, it means continued strong investment in our coal-fired power stations - among the newest and most reliable in Australia, to ensure ongoing supply security for our business customers.

Alongside this continued focus on coal-fired generation, we are also diversifying our portfolio with significant investments in gas, renewables, and battery storage. These initiatives are designed to provide flexible contract options, and help business customers manage energy risks as the market evolves.

Learn more about the Queensland Energy Roadmap.

New Stanwell battery pilot underway

Stanwell has signed an MOU with Quinbrook to trial an eight-hour Battery Energy Storage System (BESS) at the Stanwell Power Station site near Rockhampton. The 12-month pilot will test EnerQB technology, developed by global battery manufacturer CATL, at Stanwell’s Energy Precinct.

Unlike most large-scale batteries, which typically provide two to four hours of storage, this system is designed for eight hours of continuous discharge. Long-duration storage isn’t just a technology milestone - it’s a strategic advantage for reliability, cost stability, and transition readiness.

If proven viable, it could significantly enhance firming capability for renewable generation and improve grid stability as Queensland transitions to a lower-emissions energy mix. It has the capacity to both strengthen reliability and help manage wholesale price volatility.

Read more about this announcement.

Energy Solutions for your customers

Three time of use product: How it works and why it matters

Stanwell’s Three Time-of-Use (3TOU) tariff is designed to help businesses respond to a changing market and maximise value - if your customer’s business can manage when it uses energy, 3TOU offers real savings and sustainability benefits.

Unlike our flat tariff which is the same price 24/7, the 3TOU is built around three distinct time bands, that enables businesses to take advantage of low-cost grid solar energy during the day and avoid higher prices in the evening. It also supports the integration of renewables into your energy mix.

Stanwell’s Three Time-of-Use (3TOU) tariff is designed to help businesses respond to a changing market and maximise value. For customers who can adjust when they use energy, 3TOU can offer offers real savings and sustainability benefits.

Unlike our flat tariff which is the same price 24/7, the 3TOU is built around three distinct time bands, that enables businesses to take advantage of low-cost grid solar energy during the day and avoid higher prices in the evening. It also supports the integration of renewables into the energy mix.

• Daytime (8am–3pm AEST): lowest price, driven by abundant solar generation.

• Evening peak (5pm–7:30pm): highest price, when demand and carbon intensity are greatest.

• Shoulder (3pm–5pm, 7:30pm–8am): moderate price, bridging the gap between day and night.

How 3TOU pricing works:

Retail prices are built from wholesale costs + operating costs + customer-specific costs +margin. The wholesale cost is the biggest component - and it depends on load shape.

Under a flat tariff, customers pay the same price 24/7, while under 3TOU, customers can control energy spend by shifting energy usage. The wholesale price remains the same for both - but 3TOU provides flexibility.

3TOU offers:

1. A wholesale price that matches the flat tariff

2. No shape restrictions

3. Flexibility to install solar or batteries

Click here for more information or contact your Account Manager

Could your customers be generating income from Demand Response?

Energy Solutions customers that have capacity to shift their load or utilise onsite solar, batteries, or backup generation now have the ability to register for Demand Response – and generate additional revenue.

Demand response is the process of adjusting electricity usage in response to market signals. By reducing net load during periods of peak demand or market volatility, customers can earn direct credits on their electricity bill. Participation is flexible and optional, and Energy Solutions coordinates all interactions with the wholesale market.

Who can benefit:

• Large energy users across commercial and industrial sectors

• Customers with >0.5 MW of curtailable load or backup generation

• Businesses with flexible operations

Getting started is simple:

Our team will work with you to assess the site, identify opportunities, and coordinate integration.

We use Edge devices, SCADA, or API-only setups to make integration straightforward, and we manage all compliance testing and market registration, so the site is ready to participate and maximise value. Click here for more information or contact your Account Manager.

Socials and events

Thank you to those who joined us during 2025, we look forward to reconnecting and working with you in 2026!

Email us at retailsales@stanwell.com to register your interest in future events.

2025 End of year breakfast

Southern QLD asset tour: South Burnett

Connect with the team!

Book a meeting with the Stanwell Energy Solutions team. Email retailsales@stanwell.com

Visit Energy Solutions on the Stanwell website.