Commercial Energy Market Report: August 2026 (Full Report)

commercial energy report august 2026
Published by Watt Utilities | Energy Market Analysis | August 2026

Wholesale power got cheaper in every mainland state in August, yet contracts for 2027 and 2028 are still priced above what the spot market delivered. South Australia fell 25.3 percent, Victoria fell 14.2 percent, and all four states recorded their cheapest winter month in three years.

Each month we track the mainland National Electricity Market (NEM), the wholesale market run by the Australian Energy Market Operator (AEMO) across Queensland, New South Wales, Victoria and South Australia. Spot prices are what generators are paid in that market. Your retail contract rate differs, but sustained spot movements feed into the rates retailers offer at renewal. A new edition is published in the first week of each month.

AT A GLANCE: AUGUST 2026
  • Spot prices fell in all four mainland states. South Australia dropped 25.3 percent to $71.62 per MWh, Victoria fell 14.2 percent to $60.40, Queensland eased 7.7 percent to $60.42 and New South Wales slipped 7.1 percent to $75.71.
  • Prices are well below a year ago, down 35.2 percent in Victoria and 25.2 percent in New South Wales on August 2025. Renewal quotes should reflect that lower base, so it pays to test the market before a contract rolls over.
  • Forward contracts sit above spot. Calendar 2027 base swaps closed the latest ASX market wrap at $87.76 in NSW, $77.05 in QLD, $78.25 in SA and $64.90 in VIC, with a steeper step up into 2028 in SA and VIC.
  • Coal still supplied 61.3 percent of mainland generation over the past 90 days, with renewables and storage at 34.9 percent. That is why evenings, when solar drops away, still carry most of the price risk.
  • On Sunday 30 August solar pushed renewables to 72.7 percent of the grid while wind barely registered. The full report shows why that one day explains where your price risk now sits.

Detailed Market Summary

SA South Australia posted the largest fall, down 25.3 percent to $71.62 per MWh from $95.89 in July. The first week was the dearest, peaking at $170.99 on Wednesday 5 August when wind output was low across the southern states. Windier days from 8 August pulled the daily average as low as $6.79.
VIC Victoria fell 14.2 percent to $60.40 per MWh, reversing its July rise. Victoria and South Australia moved closely together through the month, reflecting shared wind conditions and the interconnector linking the two states. Sunday 2 August averaged minus $2.43, while the low-wind stretch lifted Wednesday 5 August to $133.09.
QLD Queensland eased 7.7 percent to $60.42 per MWh, just 2 cents above Victoria, the cheapest mainland state. Its peak of $107.05 on Thursday 6 August came during the same early-month tightness seen further south. Strong daytime solar kept most other days between $40 and $80 per MWh.
NSW New South Wales slipped 7.1 percent to $75.71 per MWh, down from $81.52, but remained the dearest mainland state for the month. Heavy reliance on black coal and fewer very cheap days kept the average higher. Its peak of $122.43 on Thursday 6 August matched the NEM-wide tight period in the first week.
FORWARDS In the latest ASX market wrap, Q4 2026 base contracts saw mild upward pressure, rising between $0.75 and $2.50 over the week. Calendar 2027 base swaps sit above August spot averages in every state, by $12.05 in NSW and $4.50 in VIC. The curve steps up again into 2028, most in SA and VIC.
FUEL MIX Over the past 90 days coal supplied 61.3 percent of mainland generation, with black coal at 43.9 percent and brown coal at 17.4 percent. Wind added 18.5 percent and solar 9.5 percent. Batteries supplied 3.0 percent, and the energy regulator now reports they set the wholesale price 16.3 percent of the time.

NEM Average Spot Price

RRP: July 2026 vs August 2026

Source: AEMO (via WEB_AVERAGE_PRICE_DAY_202608 and WEB_AVERAGE_PRICE_DAY_202607)

StateJul-26 ($/MWh)Aug-26 ($/MWh)
NSW81.5275.71
QLD65.4360.42
SA95.8971.62
VIC70.3660.40
StateMonthly AverageChange vs Jul-26Peak Day PricePeak Day
QLD $60.42 -7.7% $107.05 Thu 6 Aug
NSW $75.71 -7.1% $122.43 Thu 6 Aug
VIC $60.40 -14.2% $133.09 Wed 5 Aug
SA $71.62 -25.3% $170.99 Wed 5 Aug

Source: AEMO daily price data, calculated from WEB_AVERAGE_PRICE_DAY_202608

NEM Average Spot Price: 36-Month Rolling View

Source: AEMO monthly average price data (WEB_AVERAGE_PRICE_MONTH series, 36-month rolling)

PeriodQLD ($/MWh)NSW ($/MWh)VIC ($/MWh)SA ($/MWh)
Sep-2350.7764.5426.3141.32
Oct-2337.0542.0817.1915.12
Nov-2372.9787.3534.9444.92
Dec-2393.0068.2625.2938.03
Jan-24160.4381.1722.1032.74
Feb-24119.73111.6682.9466.07
Mar-2474.0970.4751.9967.13
Apr-2484.8189.8384.8092.50
May-2492.69273.56132.97135.71
Jun-24124.67152.75164.23176.68
Jul-24119.06127.17149.14241.22
Aug-24130.10174.45143.40149.52
Sep-2449.6658.0217.3980.29
Oct-2470.8577.4120.3635.24
Nov-24177.48219.6864.0860.91
Dec-24134.44134.7352.2561.47
Jan-25114.0183.3448.3548.22
Feb-2574.9190.3368.5591.34
Mar-2579.0189.9661.7561.79
Apr-2598.50104.0774.7688.82
May-2595.63123.0278.0583.31
Jun-25169.34256.20264.60250.40
Jul-2582.1396.9582.13164.95
Aug-2578.20101.2593.1986.86
Sep-2554.3571.2455.2757.60
Oct-2555.6677.0251.3750.17
Nov-2563.0576.9331.9232.48
Dec-2554.3871.3627.5127.92
Jan-2664.0367.2238.55152.25
Feb-2669.8783.7645.0656.00
Mar-2662.6470.3644.7452.80
Apr-2653.3159.7335.6856.18
May-2676.3482.0164.7777.49
Jun-2671.4383.3066.81125.73
Jul-2665.4381.5270.3695.89
Aug-2660.4275.7160.4071.62
August 2026 was the cheapest winter month in the 36-month window for all four mainland states. New South Wales averaged $174.45 per MWh in August 2024 and $101.25 in August 2025, against $75.71 this year. Over the past three years the lowest monthly prices have mostly come in September and October, when solar output rises and heating demand falls.

Contracting Outlook

Forward market close, latest ASX market wrap

StateCalendar Year 2027 base swapCalendar Year 2028 base swap
NSW$87.76$89.21
QLD$77.05$79.28
VIC$64.90$75.72
SA$78.25$92.40

A base swap is a contract that locks in a fixed price for every hour of the period covered. Calendar 2027 base swaps sit above August spot averages in every state, so retailers are pricing in more risk than the spot market delivered this winter. The step from 2027 to 2028 is small in NSW at $1.45 and QLD at $2.23. It is steeper in VIC at $10.82 and SA at $14.15. For renewals in the next 6 to 12 months, NSW and QLD buyers face a fairly flat curve, which suits a longer fixed term. In VIC and SA, locking in 2027 now and leaving part of 2028 open to contract later may give more flexibility. These are market signals only, not price forecasts.

Source: ASX Energy AU market wrap, latest published week

Queensland
$60.42/MWh
Monthly Average
per MWh
-7.7%
Change vs Jul-26
down from $65.43
$107.05
Peak Day Price
Thu 6 Aug

Market Rates

Average daily spot $60.42/MWh in August 2026, down 7.7 percent from $65.43 in July. Peak day Thu 6 Aug at $107.05/MWh. Lowest day Sun 2 Aug at $36.07/MWh.

Factors

Strong daytime solar kept most days between $40 and $80 per MWh. The only day above $100 came during the NEM-wide tight period in the first week, when wind output was low across the grid.

Queensland: Daily Average RRP (August 2026)

Source: AEMO (via WEB_AVERAGE_PRICE_DAY_202608)

Day$/MWh
149.24
236.07
367.42
466.29
576.63
6107.05
772.59
860.10
956.12
1068.72
1152.50
1276.24
1353.67
1464.53
1556.42
1643.54
1748.66
1845.73
1939.31
2048.06
2142.71
2273.62
2350.77
2452.00
2578.64
2685.09
2793.29
2859.16
2949.35
3045.32
3154.30
New South Wales
$75.71/MWh
Monthly Average
per MWh
-7.1%
Change vs Jul-26
down from $81.52
$122.43
Peak Day Price
Thu 6 Aug

Market Rates

Average daily spot $75.71/MWh in August 2026, down 7.1 percent from $81.52 in July. Peak day Thu 6 Aug at $122.43/MWh. Lowest day Wed 19 Aug at $46.62/MWh.

Factors

New South Wales relies heavily on black coal, and it had fewer very cheap days than the southern states. Prices lifted in the first and last weeks, with $122.43 on 6 August and $112.47 on 27 August.

New South Wales: Daily Average RRP (August 2026)

Source: AEMO (via WEB_AVERAGE_PRICE_DAY_202608)

Day$/MWh
174.58
247.18
372.98
479.26
5107.59
6122.43
791.95
876.69
983.53
1075.75
1163.54
1285.06
1378.00
1496.59
1586.96
1659.34
1757.63
1854.50
1946.62
2062.94
2162.43
2265.62
2365.22
2458.18
2595.64
2697.93
27112.47
2875.48
2966.31
3056.21
3168.35
South Australia
$71.62/MWh
Monthly Average
per MWh
-25.3%
Change vs Jul-26
down from $95.89
$170.99
Peak Day Price
Wed 5 Aug

Market Rates

Average daily spot $71.62/MWh in August 2026, down 25.3 percent from $95.89 in July. Peak day Wed 5 Aug at $170.99/MWh. Lowest day Sat 8 Aug at $6.79/MWh.

Factors

Wind drives South Australian prices more than anywhere else on the mainland. Low wind in the first week lifted the daily average to $170.99 on 5 August. Windier conditions from 8 August pulled three days below $20.

South Australia: Daily Average RRP (August 2026)

Source: AEMO (via WEB_AVERAGE_PRICE_DAY_202608)

Day$/MWh
164.28
214.13
347.99
4106.03
5170.99
6112.52
783.86
86.79
935.89
1036.85
1139.54
1237.62
1388.29
14154.78
15102.65
1648.08
1751.32
1818.06
1910.77
2077.06
2196.19
22101.02
2358.27
2462.12
2572.84
26141.74
27107.65
2894.13
2963.16
3056.98
3158.69
Victoria
$60.40/MWh
Monthly Average
per MWh
-14.2%
Change vs Jul-26
down from $70.36
$133.09
Peak Day Price
Wed 5 Aug

Market Rates

Average daily spot $60.40/MWh in August 2026, down 14.2 percent from $70.36 in July. Peak day Wed 5 Aug at $133.09/MWh. Lowest day Sun 2 Aug at minus $2.43/MWh.

Factors

Victoria tracked South Australia closely, with wind setting the pattern for both states and lifting Victoria to $133.09 on 5 August. The minus $2.43 average on Sunday 2 August means generators were, on average, paying to keep running that day. This happens when strong wind meets low weekend demand, and it is a normal market outcome rather than a data error.

Victoria: Daily Average RRP (August 2026)

Source: AEMO (via WEB_AVERAGE_PRICE_DAY_202608)

Day$/MWh
151.47
2-2.43
325.71
478.29
5133.09
6109.27
788.81
85.99
933.42
1067.68
1149.10
1230.88
1377.78
1497.07
1584.77
1647.22
1750.65
1816.07
1921.14
2068.87
2136.20
2242.27
2358.44
2452.62
2594.94
2687.03
27109.25
2881.52
2958.80
3052.17
3164.37

Renewable Records: August 2026

AEMO tracks the highest and lowest instantaneous renewable share of total generation on the mainland NEM. The gap between the two shows the range the grid is running between. In August that range ran from 16.9 percent to 72.7 percent.

Highest renewable share, August 2026
72.7% renewable
Sun 30 Aug 2026, 12:30 (31,714 MW total mainland NEM generation)

Strong sunshine on a Sunday lunchtime, when business demand is lowest, let solar do almost all the work. Rooftop and utility solar together supplied 68.5 percent of generation, while wind contributed only 3.2 percent. Distributed PV is rooftop solar on homes and businesses, generating into the grid. The all-time NEM record still sits above 78 percent.

Distributed PV45.8%
Utility solar22.7%
Black coal17.5%
Brown coal8.7%
Lowest renewable share, August 2026
16.9% renewable
Fri 7 Aug 2026, 04:00 (22,603 MW total mainland NEM generation)

At 4:00 am on Friday 7 August there was no solar and wind supplied just 7.1 percent of generation. Coal covered 75.3 percent of the grid, with hydro and gas filling most of the rest. It came straight after the dearest days of the month, and on 6 August daily averages topped $100 in every mainland state.

Black coal55.9%
Brown coal19.4%
Hydro9.3%
Gas7.8%

High-renewable windows like 30 August push daytime spot prices towards zero. Low-renewable windows, usually overnight or on still evenings, are when prices spike. Retail products that smooth out this swing, such as fixed-price contracts or caps, carry a premium because the retailer takes on that risk. A cap contract pays out when spot prices go above an agreed level, and knowing when your sites use power helps decide how much of that premium is worth paying.

Source: AEMO NEM data dashboard, renewable penetration record export.

EventDateTimeRenewable share (%)Total generation (MW)
HighestSun 30 Aug 202612:3072.731,714
LowestFri 7 Aug 202604:0016.922,603

AEMO Fuel Mix: Last 90 Days

43.9%
Black Coal
17.4%
Brown Coal
18.5%
Wind
9.5%
Solar
3.5%
Hydro
3.9%
Gas
3.0%
Battery
0.4%
Biomass
0.0%
Liquid Fuel
Generation Mix: Last 90 Days

Source: AEMO NEM data dashboard, fuel mix export, past 90 days, mainland states only.

Fuel typeShare (%)
Black coal43.9
Brown coal17.4
Wind18.5
Solar9.5
Hydro3.5
Gas3.9
Battery3.0
Biomass0.4
Liquid Fuel0.0

Coal supplied 61.3 percent of mainland generation over the past 90 days, and renewables and storage supplied 34.9 percent. Wind was the largest renewable source at 18.5 percent, ahead of solar at 9.5 percent. Because coal and gas still carry the grid overnight and on still evenings, price risk stays concentrated in those hours even as daytime prices fall.

Watt’s News

Annual tariff reviews identify around $350,000 in client savings

Every August, and again in March, our team reviews the tariffs on our C&I clients’ sites. A site can end up on a tariff that no longer matches how it uses power, and moving eligible sites to a better tariff lowers their costs. This year’s August reviews are complete, and we’ve identified roughly $350,000 in savings across our clients.

Lower wholesale prices open a window for long-term contracts

AEMO reported that NEM wholesale prices averaged $74 per MWh in the June quarter, the lowest June quarter average since 2020, as renewables supplied a record 42.1 percent of generation. August prices fell again in every mainland state. For larger clients, this is a good time to consider locking in longer contract terms. If your renewal is coming up in the next 12 to 18 months, talk to us about your options.

Industry News

AEMO’s 2026 ESOO finds no reliability gaps before 2030

AEMO’s 2026 Electricity Statement of Opportunities, released on 25 August, found no forecast reliability gaps before 2030. A record 9.1 GW of new generation and storage connected in 2025-26. AEMO forecasts consumption to rise more than 40 percent over the next decade, with data centres growing from about 3 percent to 13 percent of grid supply.
Source: Australian Energy Market Operator, August 2026

Batteries now set the wholesale price 16.3 percent of the time

The Australian Energy Regulator’s Wholesale Electricity Market Performance Report 2026 found batteries set the NEM wholesale price 16.3 percent of the time in 2025, up from about 1 percent in 2021. During Queensland evening peaks the figure reached 25.5 percent. The AER identified a further 6.5 GW of committed battery storage in the pipeline.
Source: Australian Energy Regulator, August 2026

Victoria opens Australia’s first offshore wind auction

The Victorian Government opened Australia’s first offshore wind auction in late August, seeking 2 GW of capacity, enough to supply about 1.5 million homes. Bids close in August 2027, contracts are due to be awarded in 2028 and first power is expected by 2035. Successful projects will be backed through the new Electricity Services Entry Mechanism.
Source: Victorian Government and ABC News, August 2026

Ready to review your energy contract position?

Our team works with SME, C&I and Strata clients across Queensland, New South Wales, Victoria and South Australia. Get in touch for a no-obligation portfolio review.

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