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Australia Installs Record 4.9 Gigawatt Hours of Grid Batteries in 2025, Equaling All Prior Years Combined
Rapid expansion of large-scale storage marks a turning point for the National Electricity Market as battery capacity added this year matches cumulative installations from 2017 to 2024
Australia has commissioned 4.9 gigawatt hours of grid-scale battery storage in 2025, a record annual addition that matches the total capacity brought online across the previous seven years combined, according to newly released industry data.
The milestone underscores the accelerating transformation of the National Electricity Market as developers race to firm renewable generation and stabilise supply.
The surge in installations reflects the commissioning of multiple large battery projects across New South Wales, Victoria, Queensland and South Australia, many co-located with wind and solar farms.
Analysts say the pace of delivery this year alone equals the entire volume installed between 2017 and 2024, highlighting a sharp inflection point in Australia’s energy transition.
Grid-scale batteries play a crucial role in absorbing excess solar and wind output during periods of high generation and releasing electricity during peak demand, reducing reliance on gas-fired peaking plants and supporting grid frequency control.
Market operators have repeatedly emphasised the need for rapid deployment of storage to maintain reliability as ageing coal-fired power stations progressively retire.
Investment has been driven by a combination of federal capacity investment schemes, state-based energy storage targets and improved revenue certainty in wholesale and ancillary service markets.
Falling technology costs and faster construction timelines compared with traditional generation assets have further boosted developer interest.
Energy market observers note that the rapid expansion of battery capacity is reshaping price dynamics in evening peak periods, dampening extreme price volatility while strengthening system resilience during heatwaves and unexpected outages.
However, they caution that sustained build rates will be required in coming years to meet projected demand growth and fully support Australia’s renewable buildout.
The commissioning milestone positions Australia among the fastest-growing battery markets globally and signals a decisive shift toward storage-led grid modernisation.
With additional projects already under construction and financial close reached on several more, total installed grid battery capacity is expected to continue rising sharply beyond 2025.
The milestone underscores the accelerating transformation of the National Electricity Market as developers race to firm renewable generation and stabilise supply.
The surge in installations reflects the commissioning of multiple large battery projects across New South Wales, Victoria, Queensland and South Australia, many co-located with wind and solar farms.
Analysts say the pace of delivery this year alone equals the entire volume installed between 2017 and 2024, highlighting a sharp inflection point in Australia’s energy transition.
Grid-scale batteries play a crucial role in absorbing excess solar and wind output during periods of high generation and releasing electricity during peak demand, reducing reliance on gas-fired peaking plants and supporting grid frequency control.
Market operators have repeatedly emphasised the need for rapid deployment of storage to maintain reliability as ageing coal-fired power stations progressively retire.
Investment has been driven by a combination of federal capacity investment schemes, state-based energy storage targets and improved revenue certainty in wholesale and ancillary service markets.
Falling technology costs and faster construction timelines compared with traditional generation assets have further boosted developer interest.
Energy market observers note that the rapid expansion of battery capacity is reshaping price dynamics in evening peak periods, dampening extreme price volatility while strengthening system resilience during heatwaves and unexpected outages.
However, they caution that sustained build rates will be required in coming years to meet projected demand growth and fully support Australia’s renewable buildout.
The commissioning milestone positions Australia among the fastest-growing battery markets globally and signals a decisive shift toward storage-led grid modernisation.
With additional projects already under construction and financial close reached on several more, total installed grid battery capacity is expected to continue rising sharply beyond 2025.
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