Battery energy storage deployment in Australia’s National Electricity Market (NEM) is rapidly accelerating.

As the system transitions away from coal and the demand for energy storage increases, the delivery of battery energy storage systems will be critical to maintaining system reliability and supporting renewable generation.

This article provides an update on battery energy storage deployment in the NEM, highlighting newly commissioned assets, trends in system size and duration, and what this means for our forecast through to the end of 2028.

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Executive summary

• Record deployment in Q2 2025: 585 MW and 1,170 MWh of new battery energy storage commenced operation, marking the largest quarterly addition to date. The commissioning of LaTrobe Valley BESS in July 2025 brings total NEM battery capacity to 2.8 GW.
• Shift toward larger and longer-duration systems: All newly commissioned batteries exceeded 100 MW and had a 2-hour duration.
• The NEM Battery pipeline has grown to 22 GW: By year-end, we expect another 2 GW of capacity to become commercially operational.
• The battery fleet is projected to reach 18 GW by the end of 2028: We have taken a more conservative view after several projects were discontinued or delayed in the AEMO’s NEM July 2025 Generation Information release.

NEM grid-scale battery energy storage capacity reaches 2.8 GW and 4.7 GWh in Q2 2025

In Q2 2025, a record 585 MW and 1,170 MWh of grid-scale battery capacity commenced commercial operations in the NEM. This marks the largest quarterly deployment to date, beating the previous record of 500 MW in Q4 2024.