WA’s average real-time wholesale electricity price climbed 30 per cent last quarter compared with the same quarter in 2025, to a record high driven by a reliance on gas.
WA’s average real-time wholesale electricity price climbed 30 per cent last quarter compared with the same quarter in 2025, to a record high driven by a reliance on gas.
The finding is a key takeaway from the Australian Energy Market Operator’s quarterly outlook, released today, which said lower wind generation and reduced coal-fired power between the two periods had resulted in less lower-cost supply.
The lack of wind was attributed to outages because of expansion work at the Warradarge wind farm, and weaker seasonal conditions than in the previous comparable quarter.
The amount of coal in the grid fell by 137 megawatts, or 17 per cent, because of planned outages and last year’s retirement of the state-owned Muja C power station.
Instead, the grid turned to gas-fired generation – up an average of 27 per cent in the 2026 June quarter compared with the same period in 2025 – while renewable generation slid back from 33.6 per cent to 32 per cent.
Average renewable contribution to the state’s grid peaked at 52.4 per cent in the December quarter but has fallen in each quarter since.
But the market regulator tends to compare quarter with comparable quarter, in an ‘apples for apples’ model which removes seasonal factors at play.
Pricing was up considerably, to a record average Wholesale Electricity Market high of $117.87 per megawatt hour – up $27.41 per megawatt hour from the June quarter in 2025.
The pricing mechanism has been run since the commencement of the new wholesale market in 2023.
It is paid by a small number of market participants, with retail electricity subsidised by the state government for end users in the system.
AEMO executive general manager – Western Australia and strategy Kirsten Rose said the state’s ability to lean on gas during a challenging period for the commodity was notable.
“Overall, wholesale electricity prices increased due to reduced wind generation, lower coal availability due to planned and forced outages, and plant retirement, increasing the reliance on gas-powered generation," she said.
"The domestic gas market also demonstrated its resilience.
“Despite maintenance activities, lower production and ongoing cyclone recovery impacts, coordinated operational management ensured gas supplies remained secure throughout the quarter."
Ms Rose also noted a significant uptick in battery storage over the past year, with more than 1,000 megawatts of new capacity joining the network.
"We continue to see the positive impact of increased battery storage capacity transforming how the power system operates, strengthening system security, increasing competition and helping integrate more renewable energy into the market," she said.
