​AEMO has published the final 2026 Integrated System Plan (ISP). The plan reaffirms that the least-cost pathway remains a renewable-led system firmed by storage, supported by transmission, and backed by gas.

However, the outlook has evolved since both the 2024 ISP and the draft 2026 ISP. The final plan assumes a doubling in grid-scale storage by 2030, faster adoption of home batteries, and reduced participation in virtual power plants (VPPs).

​This article explores what changed in the 2026 ISP, why those changes occurred, and what they mean for batteries in the National Electricity Market.

Executive summary

Relative to previous assumptions, the final 2026 ISP:

• Emphasises grid-scale capacity, reaching 33 GW by 2030, 40% above the draft.
• ​Keeps grid-scale storage above 35 GW through to 2050.
• Accelerates home battery uptake following the Cheaper Home Batteries Program.
• Lowers VPP and vehicle-to-grid (V2G) participation.
• Assumes greater medium storage capacity (4-12h), but less “deep” capacity (>12h).
• Adjusts transmission plans, as batteries and distribution networks provide alternative support. Changes in costs and generation also change regional needs.

1. The 2026 ISP doubles grid-scale battery capacity, and sustains it to 2050

• ​The final 2026 ISP doubles AEMO's 2030 grid-scale battery outlook compared with the 2024 ISP. Capacity reaches 33 GW by 2030, including a 40% increase from the draft 2026 ISP.
• This change reflects rapid project development. Between July 2025 and January 2026, another 11 GW and 44 GWh of battery projects moved into existing, committed or anticipated status. Governments also supported 5 GW and 16 GWh through tenders.
• AEMO’s connection pipeline now contains 45 GW of batteries. This already exceeds the 33 GW required by the 2026 ISP by 2030.