sa MARKET UPDATE
Electricity Prices
In September 2025, we observed that South Australia’s electricity market continued to experience volatility driven by a combination of supply and demand factors. Wholesale electricity prices remained elevated, influenced by network constraints, periods of lower wind generation, and maintenance at key thermal plants. Gas and coal-fired power stations continued to provide reliable base-load supply, while fluctuations in wind and solar output contributed to occasional short-term price spikes across the month.
Generation Mix
South Australia’s electricity generation came from a combination of gas, coal, wind, and solar. Around 55–60% of supply was delivered by renewable sources, with rooftop solar providing strong daytime generation and wind output remaining variable throughout the month.
Several key factors influenced supply and prices in September:
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Torrens Island Power Station Unit 2 was offline for scheduled maintenance in early September, temporarily reducing gas-fired generation.
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Local network constraints added pressure on supply during high-demand periods.
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Wind generation fluctuated significantly, with periods of lower output causing short-term price spikes, particularly during evening peaks.
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Rooftop solar output provided downward pressure on prices during the day, but sharp evening demand once solar declined contributed to higher spot prices.
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Gas-fired generation stepped in to meet demand during low renewable output, adding cost pressures due to higher fuel costs.
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Battery storage assets, including the Dalrymple and Lake Bonney batteries, helped stabilise the grid by storing excess renewable energy during high output periods and discharging during peak demand.
Futures Pricing
We have observed that forward electricity prices for South Australia in September 2025 showed moderate to high volatility:
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Base month futures fluctuated by roughly ±12–15%, tracking the average price trend.
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Evening peak prices spiked, reflecting periods of low wind generation, reduced rooftop solar contribution in the late afternoon, and high grid demand during peak periods.
what is means for your business
Energy costs in South Australia remain highly sensitive to fluctuations in renewable output and high-demand periods. Midday rooftop solar provides some relief, but businesses face sharp price rises during evening peaks when wind and solar generation drop. Maintenance outages at gas plants and local network congestion add further uncertainty, creating potential impacts on operational budgets, cash flow, and long-term energy planning.
If your business does 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.
SA ELECTRICITY FUTURE PRICING CHARt
BHP Secures Major Renewable Deal for Copper SA
BHP has signed its third and largest renewable electricity supply agreement for its Copper SA operations, including Olympic Dam, Carrapateena, Prominent Hill, and the smelter and refinery. The deal secures 100 MW of renewable electricity from Neoen’s Goyder North Wind Farm, backed by the 200 MW / 800 MWh Goyder Battery and Neoen’s energy management expertise.
These projects, currently under construction near Burra, are expected to create up to 550 construction jobs and 20 permanent roles, supporting regional employment while advancing South Australia’s energy transition. Combined with an existing Neoen supply arrangement, the new deal is projected to meet around 70% of Copper SA’s electricity needs from renewable sources by FY2030.
The arrangement aligns with BHP’s medium-term goal of reducing operational greenhouse gas emissions by at least 30% by FY2030 and contributes to its long-term target of net-zero emissions by 2050. It also strengthens BHP’s partnerships with Neoen and promotes further investment in renewable energy infrastructure in South Australia.
At AIMEX 2025, South Australia showcased its growing status as a global mining and energy powerhouse. Paul Martyn, CEO of the SA Department for Energy and Mining, highlighted the state’s rich resources, advanced infrastructure, and innovative technologies driving growth and supporting global decarbonisation.
Key initiatives include the Geological Survey’s digital mapping project to improve exploration efficiency, partnerships with universities and industry for new mineral extraction techniques, and enabling infrastructure like the Northern Water Project and Northern Transmission Line.
A major focus is the $2.4 billion green steel investment at Whyalla, leveraging SA’s abundant magnetite resources and renewable energy, backed by 49 renewable projects worth $19 billion. These developments position South Australia as a leader in sustainable steel, critical minerals, and low-carbon products, while ongoing government support aims to streamline approvals, foster workforce development, and expand global market opportunities.