Battery energy storage projects have emerged as the dominant force in Australia's energy investment landscape, accounting for 46% of the nation's 64GW development pipeline, according to the Australian Energy Market Operator's (AEMO) latest quarterly report.

Nine generation and battery projects totaling 1.8 GW reached full output in Australia’s National Electricity Market (NEM) during the fourth quarter of 2025, according to the Australian Energy Market Operator.

From pv magazine Australia

New data from the Australian Energy Market Operator (AEMO) shows two solar farms and seven battery energy storage projects totalling 1.8 GW of capacity reached full output in the NEM in the October-December period.

AEMO’s latest Connections Scorecard shows the pipeline of new generation and energy storage projects going through the connection process in the NEM reached a record 64 GW in the last quarter, up 7.4 GW or 14%, on the previous quarter.

During the fourth quarter, 26 GW of new connection applications were submitted and 3.8 GW of applications across 18 projects were approved. In addition, 1.9 GW of plant across 10 solar, solar and battery hybrid, hydro, and standalone battery projects was registered and connected to the NEM, enabling them to move into the final stages of commissioning and operational readiness.

AEMO Onboarding and Connections Group Manager Margarida Pimentel said the standout result in the fourth quarter was the nine projects that achieved full output.

The 1.8 GW of new capacity commissioned to full output in the quarter takes the cumulative project capacity commissioned in the 2026 financial year to date (FYTD) to 3.8 GW, 89% more than the same time last year.

“These results highlight both the maturity of the pipeline and the sector’s increasing capability to deliver,” Pimentel said. “Reaching 1.8 GW of new plant at full output this quarter is a significant achievement and underlines the collaborative effort between project proponents, network service providers and AEMO in progressing new infrastructure safely and efficiently.”

The nine projects to reach full output in the last quarter included Neoen’s 350 MW Culcairn Solar Farm in New South Wales (NSW) and Metlen Energy and Metals’ 120 MW Munna Creek Solar Farm in Queensland.

Seven battery energy storage projects also progressed through commissioning to reach full output during the quarter. These included the 600 MW Melbourne Renewable Energy Hub in Victoria, the 300 MW Tarong and 205 MW Brendale projects in Queensland, the 111 MW Templers battery in South Australia, and the 65 MW Smithfield battery project in NSW.

The Scorecard shows that battery storage continues to dominate the investment pipeline, accounting for 46% of all projects progressing through the connection process in the NEM.

Hybrid solar and battery projects account for 19.7% of projects in the pipeline, with wind (16%), solar (11.9%), hydro (4.7%) and gas (1.4%) making up the remainder.

“The growth in battery storage will complement renewable generation by storing low‑cost, low‑emissions electricity during the day for release to support demand during the evening peak,” Pimentel said, adding that the December quarter demonstrated strong progress across every stage of the connections process. “The ongoing increase to 64 GW in the connections pipeline shows that confidence in Australia’s renewable energy transition remains strong,” she said.

The Australian Energy Market Operator (AEMO) has announced that renewable energy sources supplied more than half of the quarterly energy demand in the National Electricity Market (NEM) for the first time.

Green Gold Energy’s Morgan Solar Farm in South Australia has reached a key grid-connection milestone, having received its Section 5.3.4 letter under the National Electricity Rules (NER). 

Australian thermal energy storage company 1414 Degrees has received critical regulatory approval from AEMO for its 140MW Aurora BESS.