The Australian Energy Market Operator (AEMO) has released its Quarterly Energy Dynamics (QED) report for Q1 2025, offering an analysis of the energy industry’s performance and trends.
The report notes significant price volatility in the National Electricity Market (NEM), driven by external factors. "Extreme weather events and changes in generation mix contributed to these fluctuations.” This is despite the rise in renewable energy, coal and gas-fired power plants remain crucial during peak demand periods.
In the east coast gas markets, a tight supply-demand balance led to higher prices. Infrastructure limitations, particularly in pipeline capacity, were identified as bottlenecks affecting efficient gas distribution.
Extreme weather events, including heatwaves and storms, increased demand for cooling and heating, stressing the energy systems. It suggests there is a need to enhance the resilience and reliability of energy infrastructure to cope with these conditions.
The report discussed market reforms aimed at improving efficiency and reliability, along with policy measures targeting emissions reduction. These measures align with Australia's broader climate goals and include incentives
for renewable energy projects.
Looking ahead, the report predicts continued growth in renewable energy investments, driven by policy support and market dynamics. “Technological advancements
in energy storage and grid management are critical for supporting the integration of intermittent renewable energy.” The AEMO QED Q1 2025 report provides valuable
insights into the evolving nature of the energy landscape.