Sponsored Content by GridBeyond
As Australia’s energy landscape grows more dynamic, businesses operating in the National Electricity Market (NEM) face increasing challenges – from rising costs and evolving regulations to the growing presence of decentralised and renewable energy sources.
With heightened market volatility and declining returns from traditional revenue streams like Frequency Control Ancillary Services (FCAS), the ability to forecast energy market movements accurately has become essential.
In response to these shifting conditions, smart energy technology company GridBeyond has launched Forecaster – an AI-powered software tool developed to support energy users in anticipating price changes, reducing exposure to volatility, and making more informed operational decisions.
Recently launched into the National Electricity Market (NEM), Forecaster has demonstrated early performance, delivering predictions that are, on average, 17 per cent more accurate than those produced by the Australian Energy Market Operator (AEMO), according to GridBeyond.
The company said its forecasting tool delivered improved pricing accuracy in all mainland NEM regions during the first quarter of 2025 – outperforming AEMO’s forecasts by 15 per cent in Queensland and by up to 39 per cent in New South Wales, particularly during peak events.
Improved decision-making for energy users
GridBeyond said these improvements in forecasting accuracy can offer operational and financial benefits to commercial and industrial users. In a Queensland case study, the company reported that enhanced price visibility contributed to a 25 per cent increase in value for businesses avoiding high-cost periods, and an 8 per cent increase in revenue for a grid-scale battery operator.
“Forecaster can help to optimise energy use and consumption, maximising revenues and reducing carbon emissions,” said Chris O’Brien, Managing Director of GridBeyond.
“There is a lot of interest around distributed energy resources—from business-owned renewables to rooftop solar, batteries and EVs—which can all be managed via GridBeyond’s AI-powered platform.”
The software uses machine learning and reinforcement training to deliver time-series forecasts that take into account supply, demand, price, weather conditions and other dynamic factors.
It is designed to support real-time and long-term decision-making in a market with increasing complexity and decentralised generation.
Context: shifting FCAS revenues and new market dynamics
The launch of Forecaster comes as traditional energy revenue streams, such as Frequency Control Ancillary Services (FCAS), continue to shift. In a whitepaper titled Understanding the Decline in FCAS Prices, GridBeyond referenced AEMO data showing a reduction in FCAS costs to $13 million in Q1 2025 – a $16 million drop from the same quarter a year earlier. The decline was attributed to fewer volatility events and the growing role of battery storage in frequency control.
Battery storage output in the NEM grew 86 per cent year-on-year in the quarter, reaching an average of 98 MW, driven by new capacity entering the market. GridBeyond noted that batteries accounted for 59 per cent of total FCAS enablement volume during the period.
While FCAS returns have decreased, the company maintains that accurate forecasting remains essential for participating in energy markets and managing exposure to price fluctuations.
“Our forecasting platform gives energy stakeholders the clarity they need to act with confidence – whether they’re bidding into volatile markets or optimising long-term performance,” said Ben Sigrin, Senior Product Manager at GridBeyond.
Part of a wider energy management platform
Forecaster is the first in a new suite of GridBeyond services now available in Australia. Other tools include ‘Baseline’, which provides real-time monitoring of energy consumption and emissions; ‘Designer’, an AI-powered platform for evaluating the profitability and sustainability of energy investments; and a managed battery-as-a-service offering that helps businesses monetise energy storage assets.
The company said these tools are designed to support businesses in aligning energy use with operational demand, hedging against volatility, and improving long-term planning in a rapidly changing market.
To explore GridBeyond’s software solutions in more detail, download the whitepaper here.
The content of this article is based on information supplied by GridBeyond. This information is general in nature and has been prepared without taking your personal/ professional/business objectives, circumstances and needs into account. You should consider the appropriateness of the information to your own circumstances and, if necessary, seek appropriate professional advice. Consider the terms and conditions for the product before making any decision.
