Image: Engie
Australia is set to launch its largest-ever battery storage tender, aiming to secure around 4GW of capacity and 16GWh of storage across six states and territories.
This tender is part of the Federal Government's broader capacity investment program, which is crucial to meeting the country’s renewable energy target of 82% by 2030.
As part of the program, the government is seeking at least 23GW of new wind and solar generation capacity and 9GW (36GWh) of battery storage. The importance of battery storage to Australia's grid is growing, as batteries provide key services such as frequency control, inertia, and load balancing, helping to manage the increasing share of renewable energy while addressing peak demand during early mornings and evenings.
The 4GW capacity being tendered is roughly double the current total capacity of large-scale batteries already integrated into the grid, while the storage capacity sought is six times larger. This reflects the rising demand for energy arbitrage and larger storage solutions in battery projects.
Tender Process and Stages
The tender will unfold in two stages:
Stage 1 focuses on projects expected to deliver returns by December.
Stage 2 will assess the financial viability of shortlisted projects by May.
Strategic Focus on Large-Scale Storage
Battery storage is seen as a key component of Australia’s green energy transition, especially for large-scale projects. While rooftop solar has seen success, its impact on the grid has driven the push for more storage, with large-scale batteries becoming the primary focus.
In addition, the Australian government is enabling bi-directional charging for electric vehicles (EVs), allowing them to feed electricity back into the grid, acting as “batteries on wheels.” This could further support grid stability, although widespread adoption may take time.
Regional Allocations
Victoria will receive the largest allocation of 1GW, followed by New South Wales (0.9GW) and South Australia (0.4GW). A total of 1.7GW of unallocated capacity will be open for projects in these regions, as well as in Queensland, Tasmania, and the Australian Capital Territory.
Western Australia will hold a separate tender seeking 500MW and 2,000MWh of capacity due to its independent grid and different market rules.
Pilot Tender Success
Earlier this year, a pilot battery storage tender in Victoria and South Australia saw overwhelming demand, with the 600MW and 2,400MWh capacity oversubscribed by more than 32 times. As a result, additional capacity was awarded to six projects, totaling over 1,000MW, including two in Victoria and four in South Australia.
Key Projects and Developments
EnergyAustralia: In Victoria, EnergyAustralia will build a 350MW, 1,400MWh battery at Wooreen and a 115MW, 230MWh facility at Springvale, a former landfill site.
South Australia: In addition to the Hallett wind farm, EnergyAustralia will build a 50MW, 200MWh battery. Pacific Blue is constructing a 60MW, 143MWh battery at its Clements Gap wind farm.
Zen Energy: The Solar River hybrid project in South Australia will feature a 170MW/653MWh battery paired with a 230MW solar farm, alongside a 250MW, 1,000MWh Limestone Coast battery near the Victoria border.
This tender represents a major step forward in Australia’s efforts to expand its renewable energy and battery storage capabilities, contributing to a cleaner, more reliable power grid for the future.
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