Topic analysis

Hot weather and hungry datacentres lift Australia’s energy demand to record highs but batteries quell prices

Australia’s Energy Market Operator (Aemo) reported record electricity demand in the first quarter of 2026, driven by extreme heatwaves and surging datacentre usage—with 18% growth in New South Wales and a near doubling in Victoria—though record rooftop solar output offset some of this demand increase. A significant expansion in large-scale and household battery capacity, which tripled daytime-to-evening energy shifting, helped moderate evening peak prices, reduced gas generation by 24% year-over-year, and pushed renewable energy’s share of generation to a new Q1 high of 46.5% across the National Electricity Market.