Over 16 GW of new battery energy storage capacity is in the pipeline across the five regions of Australia’s National Electricity Market (NEM). This could see 150 new batteries being constructed, compared to just the 27 operating today. This would result in batteries right across the NEM - from Tasmania to North Queensland.
So where are new battery projects being developed in the NEM, and what are the trends across states?
Explore the interactive map below to see where developers are building batteries in the NEM. Search for an individual asset, or toggle by expected year of commercial operations.
Locational trends differ by state
Below, we look at some of the trends within the three states with the largest battery pipelines: New South Wales (5.5 GW), Queensland (4.8 GW), and Victoria (3.9 GW).
Battery energy storage in New South Wales is mostly being developed within Renewable Energy Zones
In New South Wales, the majority of new battery energy storage capacity is located with Renewable Energy Zones (REZs) in the state.
Renewable Energy Zones are regions with high renewable generation potential where companies can build new generation projects. These need new transmission and/or local system support to function, and batteries can provide that support.
2.1 GW of battery capacity is located just within the Hunter-Central Coast REZ. Located near Newcastle, north of Sydney, this is the current location of the 2.9 GW Eraring coal power station. This is due to retire in 2027, and the three batteries will help to replace its output.
Two batteries totalling 350 MW in capacity are being built within the Australian Capital Territory. The region operates within the New South Wales market in the NEM.
Batteries could reach North Queensland, at the very tip of the NEM
In Queensland, developers are also locating batteries within proposed Renewable Energy Zones, expanding battery energy storage to the northernmost part of the NEM. Five battery projects, totalling 1.4 GW, are located in North Queensland, supporting new renewable generation within this region. All are co-located alongside new renewable generation capacity.
The five projects in North Queensland account for 29% of the total battery pipeline in Queensland. The remainder is located in South Queensland, close to Brisbane, (46%), and central Queensland near Stanwell power station (24%). The entire pipeline is found on the transmission network hugging the state’s east coast.
The battery energy storage pipeline in Victoria is concentrated around Melbourne
In Victoria, developers are building most new battery energy storage capacity near the state’s major demand center in the Greater Melbourne and Geelong area. This area is responsible for three-quarters of the state’s power demand.
Developers are building 2.1 GW of battery capacity in this region, which could come online by the end of 2027. This is 53% of the entire pipeline across this period for Victoria.
In regional Victoria, batteries are located within the various renewable energy zones. The largest concentration is in the South West REZ, west of Melbourne, with three projects totalling 716 MW.
Multiple factors determine where to locate battery energy storage
Different factors affect where to develop new battery energy storage projects in the NEM. These can change the revenue potential for different sites, the costs of developing and building them, or the ability to connect them to the grid.
- Revenue opportunity: the value batteries can earn within state differs by location. This could be due to different marginal loss factors, which affects the value earned by trading energy. Constraints can also limit dispatch at certain times in some locations.
- Grid connection access: projects need to be able to connect to the grid to be built. This can be made easier by building on the site of existing connections, such as retired power stations (i.e. Liddell BESS). Batteries can also co-locate to share a grid connection with nearby generation.
- Land and other development costs - battery energy storage systems need land which ultimately carries a cost, typically highest near urban areas. Where a battery is located will also affect planning requirements which change development costs.
- Access to government schemes - state and federal governments provide support for new battery projects being built in key locations. This has been through contracts such as SIPs, or the CIS and LTESA schemes. Accessing this support can help projects achieve financing, and ultimately get built.