April 2025 Energy Market Wrap: What Businesses Should Know

The National Electricity Market (NEM) experienced notable shifts in April 2025, with businesses across Australia facing increased volatility and higher electricity prices. These fluctuations were driven by a combination of infrastructure constraints, generator outages, and renewable energy variability. Understanding these changes is critical for commercial and industrial (C&I) customers seeking to manage energy costs and optimise procurement strategies.

Key Highlights from the April 2025 Report

• Spot prices rose across all mainland NEM states compared to March 2025.
• New South Wales reported the highest average price at $104.07/MWh.
• Victoria saw the lowest average at $74.76/MWh, despite experiencing significant price volatility.
• Generator outages and transmission line constraints played a major role in price increases.
• Contract markets showed relative stability by month-end.

National Electricity Market Overview

Spot Price Trends

April marked a reversal from the previous month’s pricing patterns, with upward movement in average spot prices:

• NSW: $104.07/MWh (up from $89.96/MWh)
• QLD: $98.50/MWh (up from $79.01/MWh)
• SA: $88.82/MWh (up from $61.75/MWh)
• VIC: $74.76/MWh (up from $61.79/MWh)

This increase was primarily driven by:

• Coal generator outages – both planned and unplanned
• Transmission constraints – notably on the Victoria-NSW interconnector
• Renewable generation variability – especially in South Australia

Contract Market Stability

Despite volatility in the spot market, FY26 wholesale contract prices remained relatively flat by the end of April:

• QLD: $107.77/MWh
• NSW: $122.35/MWh
• SA: $95.16/MWh
• VIC: $80.90/MWh

These figures indicate cautious market sentiment as stakeholders await greater clarity on generator availability and fuel mix shifts.

State-by-State Breakdown

New South Wales

Average Price: $104.07/MWh
Main Drivers: Coal generator outages and Victoria-NSW interconnector limits.
Notable Event: Price spike up to $17,498.96/MWh, highlighting extreme volatility.

Queensland

Average Price: $98.50/MWh
Main Drivers: Ongoing issues with coal-fired units and interconnector constraints.
Local Impacts: Reduced inter-state flows heightened reliance on local generation.

South Australia

Average Price: $88.82/MWh
Main Drivers: Weak wind conditions increased dependence on backup generation.
Renewable Risk: Highlights the intermittency risk of wind reliance in SA’s energy mix.

Victoria

Average Price: $74.76/MWh
Volatility: Large number of pricing intervals at or below $0/MWh due to oversupply.
Key Issue: Transmission bottlenecks limited export capability, leading to price suppression during peak solar and wind generation.

Market Composition: Fuel Mix Insights

According to AEMO’s fuel mix data, from January to April 2025:

• Coal (Black & Brown) still dominated, supplying 63% of total NEM generation.
• Wind contributed 15%
• Solar at 10%
• Hydro at 7%
• Gas at 5%

This underscores the ongoing dependence on coal despite growing renewable investments. Low wind generation in April reinforced concerns about grid stability and the need for diversified dispatchable capacity.

Industry News Snapshot

1. Callide Power Station Faces Restart Deadline

CS Energy has until 30 May 2025 to bring the damaged generator back online after an explosion on 4 April. This has intensified scrutiny on ageing coal assets and their impact on grid reliability.

2. BOC Australia’s 10-Year Solar Power Deal

BOC Australia entered a 10-year agreement with ZEN Energy to source 45% of its power needs from solar across NSW, QLD, and VIC—marking a significant step towards decarbonisation in industrial operations.

3. Watt Utilities Welcomes New Team Members

We’re pleased to welcome Mahee Moturu, our new Victorian Energy Manager, and Dean Van Der Heever, who will support our SME clients in the Robina office.

Practical Takeaways for Business Energy Users

• Review your contracts now: With FY26 prices remaining stable, businesses should explore locking in competitive rates before further market movement.
• Monitor generator availability: Outages can drive spot volatility—an important risk for customers on wholesale or flexible pricing models.
• Embrace energy efficiency: Reducing consumption is the most effective hedge against rising prices. Review Watt Utilities’ Energy Cost Reduction strategies for actionable insights.
• Consider renewable sourcing: As shown by BOC’s deal, long-term solar PPAs can reduce carbon emissions and provide pricing stability.

Further Reading

• Accessing Energy Efficiency Grants: What Australian SMEs Need to Know
• Top Five Energy Efficiency Upgrades Every Australian SME Should Prioritise