sa MARKET UPDATE
Electricity Prices
In August 2025, wholesale electricity prices in SA increased by approximately 6% compared to July. Price volatility was driven by lower wind output along the Mid-North, limited solar exports during cloudy days, high evening demand in Adelaide, along with short-term constraints in the Heywood interconnector to Victoria.
Generation Mix
South Australia continues to lead the transition to renewables, with several key developments:
-
Renewables share: Around 60–65% of electricity generation now comes from solar, wind, and battery storage, with gas providing backup during low renewable periods.
-
Infrastructure developments: We are seeing large-scale battery projects and new wind and solar farms continue to expand, though grid congestion at key connection points can occasionally limit the full delivery of renewable energy.
-
Operational impact: During August, low wind output combined with high evening demand caused short-term price volatility.
Futures Pricing
We have observed that forward electricity prices for South Australia in August 2025 showed moderate to high volatility:
-
Base month futures fluctuated by roughly ±12–15%, tracking the average price trend.
-
Evening peak prices spiked up to 160% above average, reflecting periods of low renewable generation and high grid demand.
what is means for your business
In South Australia, we see that energy costs are strongly influenced by low wind generation during key periods, interconnector constraints limiting electricity imports, and high demand during peak times. These factors can result in sharp fluctuations in wholesale prices, which can disrupt budgeting and operational plans. For businesses, this means exposure to rapid price spikes during evening peaks or supply constraints, highlighting the need for strategies that smooth out volatility and provide cost certainty. We help businesses mitigate this by aligning energy-intensive activities with periods of higher renewable output, exploring storage solutions, and structuring procurement to reduce exposure to peak-price periods.
If you are unsure of your current position or do not yet have a strategy in place, we are here to help. Contact us for a free bill check or to discuss a tailored energy procurement plan.
ELECTRICITY FUTURE PRICING CHARt
SA Businesses Eligible for Up to $75,000 in Energy Efficiency Grants
South Australian businesses with an annual turnover of over $75,000 can now access government funding through the Powering Business Grant to reduce energy costs and invest in cleaner, more efficient solutions. With a total funding pool of $20 million, businesses can apply for grants ranging from $2,500 to $75,000 (ex GST).
This round of the program, with updated guidelines released in August, broadens eligibility to include medium-sized businesses, embedded electricity networks, and new commercial premises, allowing a wider range of organisations to participate.
Key funding priorities for the Powering Business Grant include:
-
Adding battery storage to existing solar systems
-
Investing in combined solar and battery projects
-
Undertaking energy efficiency upgrades, including refrigeration, lighting, insulation, and demand management technologies
The Powering Business Grant aims to help businesses cut operating costs, reduce emissions, and improve resilience against energy market fluctuations while supporting South Australia’s transition to cleaner energy.
To apply or discuss your options, reach out to TTEG. We will obtain your site’s historical meter data to confirm eligibility, assess your options, prepare quotes, and manage your grant application from start to finish.
In August, the SA Government officially announced it would bring forward its 100% net renewable electricity target to 2027, three years earlier than its original 2030 goal. The decision reflects South Australia’s rapid progress in renewable uptake, with more than 70% of annual demand already being met by wind and solar.
The government stressed that this move is not only about reducing carbon emissions, but also about driving lower power prices, strengthening grid resilience, and attracting new industries such as green hydrogen and advanced manufacturing. This accelerated target positions SA as a global leader in the energy transition, ahead of most developed economies.
SA Leading the Green Economy: What It Means for Your Business
South Australia has dramatically transformed its electricity generation landscape, from just 1% renewables to 74% in just over 16 years, and is on track to reach 85% renewable generation by 2025–26, as forecasted by AEMO.
To support the transition of 100% net renewable electricity by 2027, South Australia has attracted over A$6 billion in investment into large-scale renewable and storage projects, with a total pipeline of more than A$20 billion.
The state’s renewable strategy spans:
-
Large-scale generation and storage (e.g., wind, solar PV, solar thermal, batteries, pumped hydro, compressed air, thermal storage)
-
Distributed energy solutions (e.g., rooftop solar, bioenergy, home batteries)
-
Energy efficiency and demand management measures
-
Electric vehicle infrastructure and low-emission transport
-
Developing a renewables-focused supply chain and advancing low-carbon technologies
-
Strong industry-research partnerships in clean energy sectors.
For businesses, this shift is more than an environmental milestone, it represents access to a more stable, diversified, and increasingly cost-competitive energy market. The $20 billion pipeline of renewable and hydrogen investment is expected to drive innovation, strengthen supply chains, and create opportunities for industries to lower operating costs, improve sustainability credentials, and meet the growing expectations of investors, customers, and regulators. By aligning with this transition, businesses can gain a competitive advantage in an economy that is rapidly becoming greener, more efficient, and future-ready.
